Indian Sponge Offers Corrected Following Slump in Billet Prices

Indian sponge offers decline by INR 100-200/MT D-o-D & INR 300-500/MT W-o-W. The prices fall in line with continuous fall in billet prices which put pressure on India sponge manufacturers.

Today with corrections offers for FeM 78-80 C-DRI are reached at INR 14,000-15,600/MT (USD 218-242) ex-works, which was at INR 14,700-16,000/MT (USD 227- 248) same day a week ago.

In context to billet, prices slump by INR 50-300/MT D-o-D & INR 600-1,200/MT W-o-W and the fresh offers for Induction furnace grade are assessed at INR 23,200-27,200/MT (USD 359-421 ) ex-works.

Trade Updates of Key markets

Central India: The Integrated plants in Raipur are offering P-DRI in the range of INR 13,900-14,000/MT ex-plant; low trades reported at this offers. While, sponge DR-CLO (0-20 mm) deals are assessed at INR 16,200-16,400/MT ex-plant.

East India: Rourkela, Odisha based manufacturers are offering 80 FeM C-DRI mix material at INR 14,100-14,300/MT & lumps at INR 14,400-14,600/MT ex-plant, through CST billing. The manufacturers have mentioned that sales are weak which in turn stockpiling.

In Durgapur, the renowned manufacturers are strengthening sponge offers over boost in pellet exports which creates shortage of sponge in the domestic market. The trade price in the market are reported for P-DRI at INR 14,500/MT & C-DRI at INR 15,500-15,600/MT.

South India: In Karnataka, a day before, Sunvik Steels reduced sponge prices by INR 300/MT; offering FeM 80 C-DRI at INR 15,200/MT & FeM 82 at INR 15,600/MT, ex-plant.

While, other manufacturers in the state have kept offers unaltered since couple of days. The offer prices by the producers are assessed at INR 14,500-14700/MT for C-DRI & INR 14,500/MT for P-DRI (ex-plant).

Domestic sponge offers as on 13 Jun'17

Prices in INR/MT
Source: SteelMint Research