Indian Sponge Iron Export Prices Fall by USD 5/MT in Recent Deals

SteelMint in conversation with exporters learned that, recent export deals of about 3,000-5,000 MT have taken place at reduced by USD 5/MT as against prevailing offers in the beginning of this week.

As per sources the deals have taken place at USD 305-310/MT CPT Benapole, which was in the beginning of week quoted at USD 310-315/MT CPT Benapole (dry port of India & Bangladesh).

Exporters stated that, as demand is expected to remain bearish due to Ramadan festive season, they preferred to deal on buyers interest which was at lower range than the quoted offers.

They also added that, deals are largely through the dry port route as waiting time in sea port has increased. Meanwhile as per calculations the latest offers for sea route reported at close to USD 325/MT CNF Chittagong, Bangladesh.

Indian sponge iron prices have slightly fluctuated since more than a week due to average inquiries and sufficient availability. The latest offers in eastern region which known as major exporter of Sponge iron to Bangladesh is hovering at INR 19,000-19,200/MT (USD 275-278) ex-Rourkela, INR 19,300-19,500/MT (USD 279-282) ex-Durgapur & INR 19,200-19,400/MT (USD 278-281) ex-Jharkhand.

India's sponge iron export to Bangladesh have increased sharply and recorded at around 366,503 MT in FY19(Apr'18-Feb'19), which was about 278,707 MT during FY18 (Apr'17-Mar'18).

The exports have been increasing in line with rising steel capacities in Bangladeh, which are currently more than of 6-7 MnT, as per mill owners in Bangladesh.