Indian Sponge Iron Export Prices to Bangladesh remain Stable in Fresh Deals

Bangladeshi mills seem to remain active to source raw materials as fresh bookings have been reported for sponge iron at firm price levels.

As sources reported, close to 8,000-10,000 MT sponge C-DRI (80 FeM, 100% lumps) were booked for exports to Bangladesh yesterday, at an average price of USD 300-305/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 315-320/MT CFR Chittagong, Bangladesh.

During the last week, similar trade volumes were reported in Bangladesh at the price range of USD 300-308/MT CPT Benapole. Thus, with recent deals SteelMint's weekly price assessment are more or less firm against last week.

Participants claimed that the buyers are willing to procure material at sustained price range, however if prices go further high the buyers may back-out as local steel prices have remained more or less firm in Bangladesh.

As per data maintained with SteelMint, Indian sponge iron exports to Bangladesh registered at 422,818 MT in Jan-Nov'19, which is a hike of 29% Y-o-Y as against 327,735 in Jan-Nov'18. Further, exports to Nepal surge by 19% to 119,801 MT in Jan-Nov'19 than the 100,473 MT during Jan-Nov'18.

Further, it is to be noted that sponge iron offers to Nepal (FeM 80, 70:30 mix material) evaluated at USD 280-283/MT loaded to rake in eastern India, this attract freight cost of USD 25/MT CPT Nepal, Raxaul/Jogbani border.

Sources believe that sponge iron exports would remain strong in coming months on account of rising melting capacities in neighboring countries like Bangladesh, Nepal & Bhutan which are the major importers of Indian sponge iron.