India: Domestic Sponge Iron Offers Correct Amid Slow Down in Inquiries

Sponge iron prices in Indian domestic market slightly fell by INR 200-500/MT (USD 3-7) in last couple of days over persistent limited inquiries.

Industry experts believed that, prices less likely to find support as selling pressure is increasing with the producers amid seasonal better production output.

In addition expected fall in raw material offers, has turned buyers cautious and put them on wait & watch mode for decent procurement, they added.

SteelMint learned that export deals were not up to the mark on higher price quotations, although Bangladeshi buyers seemed interested to buy on lower price range at around USD 330/MT CNF Chittagong.

The participants in eastern India who are actively involved in exports of sponge iron stated, prices should sustain at current levels looking at balanced demand, as domestic demand has softened, while export bookings is gradually picking up.

Meanwhile in central India - Raipur, the integrated plants reported, the suppliers are quite active in current circumstances as almost all kilns are running at high capacities. Amid low demand, suppliers might hurriedly conclude deals at bids . Hence prices significant fall in last 2 days by INR 500/MT.

Coming to southern India - Bellary where the large number of standalone sponge producers are based, mentioned that demand from outside state (Western India) is seen at lowered offers. As per them in comparison with price quotation, buyers in Maharashtra are willing to book material at lessen price at close to INR 300-400/MT. Thus this is forcing suppliers to lower offers, who are unable to hold inventory for the time period.

The current offers for Pellet sponge ( P-DRI) is about INR 19,500-19,600/MT ex-Raipur, INR 18,400-18,600/MT ex-Durgapur and INR 20,200-20,300/MT ex- Bellary for 78-80 FeM grade.