Indian Sponge Iron Export Offers Fall by USD 5/MT

Sponge iron export offers from Jharkhand & Odisha (eastern India) have moved down slightly by USD 5/MT due to declining offers for domestic buyers & falling exchange rate of Indian Rupee against dollar.

One of the major supplier - Jharkhand Ispat being reported fall in domestic prices and currently reported 100% C-DRI lumps at INR 19,600/MT, which is equivalent to USD 280/MT ex-plant, Ramgarh.

SteelMint analyzed that, the logistic cost from Jharkhand to Benapole port (dry port of India & Bangladesh) is about INR 2,000-2,500/MT (USD 28-36). Hence the latest export offers are assessed at USD 310-315/MT CPT Benapole. On CNF basis it would be around USD 330/MT CNF Chittagong, Bangladesh.

Last week, the offers were hovering at around USD 315/MT & USD 335/MT CNF Chittagong, Bangladesh. Thus, this week prices have moved down by USD 5/MT.

As per exporters in eastern India, small parcels have been sold in recent offer of around USD 311-313/MT CPT Benapole. Meanwhile the bulk orders still under wait & watch mode through the buyers end with an assumptions of further fall in prices amid sufficient stocks. Notably the Sponge iron imports in Bangladesh from India gained during Jan'19 and reached at 44,000 MT which was at an average about 30,000-35,000 MT during 2018, on monthly basis.

It is also learned that, the major mills in Bangladesh are having good amount of scrap, as per data maintained by SteelMint.

According to data by GMS, the Bangladesh has imported about 312,397 LDT Ship breaking scrap in Mar'19, higher by 20.7% M-o-M. Similarly, the country's bulk ferrous scrap import being sharply surged to 146,000 MT in Mar'19 against 29,550 MT in Feb'19.

Participants believed that, sponge iron's routine deals for exports are taking place, however the major bookings are expected to resume post the end of Ramadan festival, which is beginning during 1st week of May'19. The local trade activities are expected to remain affected during the Ramadan season, trade sources mentioned.