Indian Sponge Iron Export Offers to Bangladesh Decline by USD 5-10/MT

Following drop in Indian domestic sponge prices and competitive imported scrap offers, export offers of Indian sponge iron to Bangladesh fell further by USD 5-10/MT W-o-W.

SteelMint's assessment for Indian Sponge C-DRI (80 FeM, 100% lump) export is hovering at USD 285-290/MT CPT Benapole (dry port of India & Bangladesh) which is equivalent to USD 300-305/MT CFR Chittagong, Bangladesh.

As per trade sources, Indian sponge iron demand among Bangladeshi mills is quite dull over competitive scrap prices along with constant drop in Indian domestic sponge prices. Thus buyers are holding back their offers and are waiting for clear market direction, resulting to drop in price range.

The local steel demand in Bangladesh has slowed down as prices are under pressure and mills are providing discount to improve inquiries, sources informed.

Inline with this, imported scrap offers to Bangladesh inched down by USD 5/MT, owing to limited participation. As per assessment made by SteelMint, offers for containerized Shredded scrap from UK/Europe currently stand in the range of USD 290-295/MT, CFR Chittagong, down by USD 5/MT W-o-W.

Statistics

Indian Sponge iron exports are increasing continuously following surge in melting capacities in neighboring states. India exported about 871,962 MT Sponge iron during Jan-Dec'19, surge by 30% as against 671,124 MT in Jan-Dec'18.

Bangladesh remained as top buyer of Indian sponge iron exports with 457,862 MT imports (52.5%) followed by Bhutan at 175,467 MT (20.1%) & Nepal at 147,500 MT (16.9%) during Jan-Dec'19.