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Indian Sponge Iron Export Offers to Bangladesh Drop to Over 2 Year Low

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Sponge Iron

BigMint Bureau

760 Reads

4 Oct 2019, 14:05 IST

Indian Sponge Iron Export Offers to Bangladesh Drop to Over 2 Year Low

Continuous drop in global scrap prices has pulled down Indian sponge iron export offers near to 28 months low.

The current export offers to Bangladesh of Indian origin Sponge iron (80 FeM, 100% lumps) is hovering at USD 275/MT CFR Chittagong. This price range is low since price assessment made by SteelMint from May'17.

Imported scrap offers to Bangladesh have dropped by about USD 70/MT in last couple of month, following with this sponge iron export offers from India plunged by USD 20/MT during Sep-Oct'19.

Another major factors behind significant drop in sponge iron offers are falling domestic steel prices as well drop in local steel production in Bangladesh. As per conversation, domestic steel prices in Bangladesh plunged by BDT 5,000-6,000/MT (USD 59-71) in last one quarter, which led to curtailed steel production in country by about 30-50%.

Participants believe that, Indian sponge iron export offers to remain under pressure as demand continued bearish for the domestic as well exports. Sponge iron prices in India's eastern region (Odisha) declined by INR 500-1,000/MT USD (7-14) in Sep'19.