Lack Of Demand Further Pull Down Indian Sponge Offers
...
Lack of domestic bulk bookings further decline Indian sponge offers. The prices fell by INR 100-300/MT (USD 1-5) D-o-D, INR 500-900/MT (USD 7-14) W-o-W & INR 1,500-2,000/MT (USD 23-31 ) M-o-M.
The producer source mentioned, selling pressure will ease further over limited inquiries which is continued for quite sometimes.
With fall in prices, today's domestic sponge C-DRI offers are reached at INR 14,000-16,000/MT (USD 215-247) ex-works.
Following the downtrend for domestic market, export offers also plunge marginally to USD 278-280/MT (CPT Benapole port, Bangladesh) which was a week ago at USD 280-285/MT for FeM 80 lumps grade material.
For an outlook purpose a key price trend setter in Durgapur, East India stated "there is no scope for further major fall in prices if we looking current high input cost against cheaper sponge trade price. However, as the buyers purchase interest is almost nil, we are reluctant to cut prices."
Although, a 300 TPD Standalone sponge manufacturer in Odisha mentioned, as stock piled up and demand is unfavorable prices to come down gradually.
Domestic sponge offers as on 19 May'17
| Region | Particulars | C-DRI | D-o-D | W-o-W | M-o-M |
| East India | Ex-Durgapur | 15,000 | 0 | -600 | -1,650 |
| Ex-Rourkela | 14,000 | 0 | -500 | -1,800 | |
| Central India | Ex-Raigarh | 14,400 | - 50 | -900 | -2,000 |
| Ex-Raipur | 15,600 | - 300 | -600 | -1,500 | |
| South India | Ex-Bellary | 14,850 | - 250 | -750 | -1,850 |
| Ex-Hyderabad | 16,000 | 0 | -300 | -2,000 |
Prices in INR/MT
Source: SteelMint Research
