Indian Sponge Iron Prices Fall on Price Competitiveness & Rising Inventories

Following price competitiveness among sponge producers on increased availability, the domestic sponge iron prices have come down significantly.

As per participants, in current circumstances sponge iron suppliers are in hurry to deal, while buyers are holding back future bookings looking at selling pressure and further price corrections in sponge iron. Thus, the price reduction continued by major sponge manufacturers.

Today the offers dropped by INR 100-400/MT and stood for P-DRI at INR 20,300-20,500/MT ex-Raipur, INR 18,800-19,000/MT ex-Durgapur & INR 20,100-20,300/MT ex-Bellary.

Meanwhile the offers for Sponge C-DRI produced through lumps reported at INR 20,500-20,700/MT ex-Rourkela, INR 20,100-20,300/MT ex-Durgapur, INR 21,300-21,500/MT ex-Raipur & INR 20,600-20,800/MT ex-Bellary.

Following dip in sponge prices and drop in domestic pellet offers in Central & Eastern India, there are no frequent deals, as mentioned by participants.

Market expects domestic sponge iron market to remain under pressure due to rising inventories and if there is further fall in raw material & Billet prices.

In Southern India- BMM Ispat, the major sponge producer in the region has today reduced sponge prices by INR 100/MT and offered P-DRI (FeM 80) at INR 20,100-200/MT ex-plant. The plant having sponge iron production capacity of 2,300 TPD (0.7 MnT pa).

Another renowned manufacturer in the state namely - BIOP Steels reduced prices by INR 100/MT and reported C-DRI lumps FeM 80 at INR 20,900/MT & FeM 82 at INR 21,200/MT ex-plant. The plant is making prime grade (high metalization) sponge iron.