Indian Sponge Market Observes Minor Fluctuations

India's domestic sponge iron market opened today with a slight price fluctuation of INR 100-200/MT, offers have remained similar on weekly basis.

Currently Sponge C-DRI offers are assessed in the range of INR 18,900-20,300/MT (USD 273-293) and P-DRI within INR 17,600-19,100/MT (USD 254-276) ex-works, India.

Central India: Offers have been stable since 3-4 day in Raipur due to limited trades in the market and limited supply by Odisha based manufacturers. Offers for P-DRI are assessed in the range of INR 18,400-18,500/MT, C-DRI at INR 19,700-19,900/MT and DR-CLO at INR 20,500-20,700/MT; ex-plant, Raipur.

Meanwhile the prices in Raigarh - Central India fell by INR 200-300/MT last day. As per major producers, the local demand for sponge iron is limited.

It should be noted that, sponge iron demand in Central India is below than the average due to power cuts in Jindal's industrial park in Punjipatra, Raigarh (Central India) by about 50% (12hrs/day), this has resulted limited productions of Ingot/Billets.

In line furnace owners have completed their fiscal stock maintenance & are holding their sponge iron purchases to find lower offers.

East India: Sponge iron manufacturers in Odisha (eastern India) reported as of now no major impact from Jindal power cut. However if it continues sales may be hampered, they added. As per them, buying activities are at firm level and booking are made only for urgent needs.

Current offers for C-DRI are assessed at INR 18,800-19,000/MT ex-Rourkela and INR 20,100-20,300/MT ex-Durgapur. Moreover, P-DRI prices are evaluated at INR 19,000-19,200/MT ex-Durgapur.

Further, export offers to Bangladesh have remained more or less firm and deals reported at around USD 330/MT CNF Chittagong, Bangladesh.

Southern India: At present, offers for 80 FeM P-DRI are in the range of INR 18,600-18,800/MT. While, the same grade C-DRI is available at INR 19,000-19,200/MT on ex-plant basis.

Trade participant reported that "Market may remain softer however no major selling pressure as of now and most of the producers have sold material in a good quantity.”

Another renowned manufacturer in the state who majorly deals for FeM 82 P-DRI, today has raised offers by INR 200/MT to INR 19,600-19,800/MT ex-plant. As per officials, they are not in a hurry for sales & are busy to dispatch earlier bookings.

One of the major sponge producer of state - BMM Ispat, having capacity to produce 2,300 TPD (0.7 MnT pa) sponge reported supply to Hindupur & Hyderabad market is good & added offers may remain range bound.