Indian Sponge Iron Prices Rise After Witnessing Downturn

Indian sponge iron market has find support on recent hike in domestic billet prices by about by INR 200-700/MT (USD 3-10) in a day. The participants stated better demand against the previous day.

Further, as per manufacturers buying interest was supported at bottomed out prices. Also they stated, looking at bottom line prices, the furnaces had resumed purchases which was halted since few days.

Following increase in prices, the latest offers for Pellet sponge (P-DRI) in major markets stood - at around INR 20,300-20,500/MT ex-Raipur, INR 20,700-20,800/MT ex-Durgapur and INR 19,800-20,000/MT ex- Bellary for 78-80 FeM grade.

A day before the producers in East India, Rourkela, Odisha - which is the mining rich state, have raised their sponge prices by INR 200/MT on improved demand from local market and North-east regions and major deals for local market reported at INR 21,000/MT (ex-plant) for FeM 80 C-DRI mix material.

Meanwhile, the participants in Central India, Raipur observing that the local pellet prices are low levels and are less expected for further sharp fall, hence indicates limitations for drop in sponge prices, this has improved demand for sponge iron and led to surge in prices by around INR 500/MT since last day.

In Southern India - Hyderabad, the buyers - furnace owners reported healthy purchase for FeM 80 P-DRI at INR 20,000-20,200/MT in last two days. Thus with improving demand the prices moved up and assessment stood at INR 20,300-20,500/MT ex-plant.

BMM Ispat, the major sponge producer in the region, having sponge iron production capacity of 2,300 TPD (0.7 MnT pa), today has raised sponge prices by INR 200/MT and latest offers for P-DRI (FeM 80) reported at INR 19,800/MT ex-plant. Another renowned manufacturer in the state namely BIOP Steel who makes prime grade material (high metalization) is offering C-DRI lumps - FeM 80 at INR 20,600/MT & FeM 82 at INR 21,000/MT ex-plant.