Sponge Iron Offers in Southern India Approaches 7- Month Low

In Southern India - Bellary, Sponge iron prices have declined by INR 1,000-1,500/MT (USD 14-22) in a week's time. Following significant drop in prices, the current offers in Bellary have hit 7 months low as the same price range was last seen during mid of July'18.

As per participants limited inquiries, strengthening supply & falling Billet prices have resulted in sharp drop in sponge prices. SteelMint's assessment showed decline in Billet prices by INR 500-800/MT, meanwhile raw materials - pellet prices being drop by INR 200/MT; W-o-W.

The current price assessment for 78-80 FeM coal based Sponge C-DRI in Bellary stood at INR 19,200-19,400/MT (USD 276-279); down by INR 1,100/MT compared with last week at INR 20,300-20,500/MT (USD 292-295). Inline P-DRI, offers decline by INR 1,500/MT to INR 18,500-18,700/MT. Prices are ex-plant & excluding GST.

-- BMM Ispat, a price trend setter in the region, having sponge iron production capacity of 2,300 TPD (0.7 MnT pa) has reduced prices by INR 400-500/MT a day before and currently offers P-DRI at INR 18,500-18,600/MT ex-plant.

Further, a sponge-cum-billet manufacturer quoted, "Little selling pressure seen in finished steel market, as of now no major deals concluded in a day".

While trade participants stated that,"prices may remain soft due to financial year closing as most of the sellers will be busy in clearing the stocks".

Another renowned manufacturer in the state who majorly produces prime grade sponge iron (FeM 82+) reported offer reduced today by INR 500/MT to INR 19,400-19,600/MT. "As of now no buying interest seen from users end" he added.

BIOP Steel in Bellary who makes prime grade material (high metalization) is offering C-DRI lumps - FeM 80 at INR 19,500-19,600/MT & FeM 82 at INR 20,000/MT ex-plant.

Similarly offers in other major markets reported down fall of INR 800/MT in Raipur - Central India & INR 500-800/MT in Durgapur & Rourkela, Eastern region; W-o-W. Latest offers for P-DRI is hovering at INR 18,600-18,800/MT ex-Raipur & INR 17,900-18,000/MT in Durgapur for 78-80 FeM grade.