Indian Sponge Iron Export Offers Correct Marginally

Sponge iron export offers to Bangladesh fell slightly by USD 5/MT in recent trades on account of stronger rupee against US dollar & less trades on slump in global scrap prices.

SteelMint's current week price assessment for lumps grade FeM 78-80 sponge iron stood at USD 330-335/MT CPT Benpole (dry land port of Bangladesh & India) & USD 350-355/MT CFR Chittagong, Bangladesh as against last week at USD 335-340/MT CPT & USD 355-360/MT CFR Chittagong; down by USD 5/MT, W-o-W.

As per exporters in eastern India, buying interest is not up to the mark amid slump in imported scrap prices as well average trade activities in domestic steel market of Bangladesh.

SteelMint in conversation with re-rollers in Bangladesh being confirmed that imported scrap prices are being competitive than those of sponge iron.

The offers for containerized Shredded 211 scrap from Europe and USA reported at around USD 355-360/MT CFR Chittagong which material realization is about 95%, while sponge iron realization is at 86-90%, which prices are cheaper only by USD 5/MT.

The smelters in Bangladesh largely melts/roll scrap about 90-95%, while sponge iron proportion is close to 5%. However depending upon the input cost they change their melting proportions.

The steel productions is the country are made about 50% through local scrap (ship breaking & local scrap) & remaining is depend on imported raw materials.

Thus, with rising steel capacities in the nation, the nation's import of raw materials being at pick mode. During Jan-Nov’18, the country's bulk scrap imports crossed 1 MnT and registered at 1,014,314 MT than the 890,004 MT in Jan-Nov’17. Top ferrous scrap exporters were USA, UK, Japan and Russia.

India's sponge iron exports to Bangladesh surge sharply by 52.5% during Jan-Sep'18 and stood at 255,463 MT, up from 166,999 MT in Jan-Sep'17.