Indian Sponge iron Export Offers Up, Buyers Opt for Scrap
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Indian Sponge iron export offers to Bangladesh continue to rally in line with surge in domestic prices. However, as per suppliers no fresh export deal reported as buyers are preferring scrap to lower input cost rather than to melt high cost sponge iron.
The latest offers for Indian Sponge iron exports hovering at USD 380/MT, meanwhile containerized imported Shredded scrap offers evaluated at USD 350-355/MT, CFR Chittagong, Bangladesh.
The sponge iron exporters based in East India - Odisha & Jharkhand stated, as the prices significant on rise, the buyers hesitant for fresh bookings as imported scrap prices on down side, also local steel demand in Bangladesh not much supported.
Meanwhile they are anticipating that the large mills who are not willing to compromise with quality steel will soon purchase sponge iron, which still on silent mode.
It is being learned that most of medium-size mills in Bangladesh have reduced sponge iron consumption to 3-6% from earlier close to 7-10% and have increased melting proportion of scrap to reduce input cost.
Notably, Indian sponge iron exports to Bangladesh declined about 25% on monthly premises, as per custom data maintained by SteelMint. In the month of Jun'18 sponge iron exports to Bangladesh from India recorded at 25,100 MT as against 33,300 MT in May'18.
Further, the country's bulk scrap imports increased from 137,200 MT in Jun'18 to 157,700 MT in Jul'18, inclined by 15% M-o-M, as per vessel line up data.
Indian Sponge iron Prices Rally
Sponge iron prices in Indian domestic market sharply surge due to shortage & rising prices of raw materials. Also demand is strong in domestic market, as per manufacturers. The prices increased by INR 1,000-2,000/MT (USD 14-29) Week-on-Week & by INR 3,000-4,000/MT (USD 43-57) in a month duration.
As per assessment, the latest offers for export grade sponge iron (FeM 78-80, lump) hovering at INR 25,300-25,500/MT (USD 361-364) ex-Durgapur & INR 24,400-24,600/MT (USD 348-351) ex-Rourkela, East India.
Meanwhile offers in other major markets for same grade stood at INR 25,500/MT (USD 364) ex-Raipur, Central India & INR 22,500/MT (USD 321) ex-Bellary, South India.
