Indian Sponge Iron Prices Surge on Recent Hike in Raw Material Offers

Sponge iron prices in Indian domestic market remained strong following hike in raw material (iron ore & pellet) prices & improved demand amidst high cost substitute products.

As per SteelMint's assessment, in a week's time sponge iron prices have rallied by INR 500-1,000/MT, in which major hike was marked in central India, Raipur by INR 1,000/MT (USD 14). In context to raw materials, Odisha based major merchant miners have announced hike in offers by INR 300-400/MT this week in both lump & fines.

Further participants claimed that, falling inventories of sponge iron amid less availability of raw materials is resulting constant rise in sponge iron prices. It is also learned that the mills have raised raw materials sourcing on anticipation of short supply of iron ore from Odisha. Thus keeping sponge prices strong.

SteelMint's assessment for 78-80 FeM coal based Sponge P-DRI stood at INR 17,400-17,600/MT ex-Raipur (Central region), INR 17,200-17,300/MT in Durgapur, (Eastern India) & INR 17,000-17,200/MT in Bellary in Southern India.

Industry sources are hopeful that domestic sponge iron prices to remain supported looking at sufficient orders with the mills, higher raw material (pellet and iron ore) prices amid restricted supply in central & eastern India.