Indian Mills Turn Active for Sponge Iron Exports; Deals Reported

Sponge iron export activities resumed for Bangladesh which remained silent last week due to Eid festive in the country.

As per latest update received by SteelMint, the fresh deals for sponge iron (79-80 FeM, 95-100% lumps) exports to Bangladesh concluded at near to USD 255-260/MT CPT Benapole(dry port of India & Bangladesh), this is equivalent to USD 275/MT CFR Chittagong.

Further couple of deals for sponge exports were confirmed from India to Nepal and the price range learned at around USD 220-225/MT ex-works, eastern India. The freight cost to Nepal assessed at around USD 25-30/MT.

Bangladesh is the main buyer of Indian Sponge iron, which account more than 50% of total sponge iron exports from India.

As per customs data maintained by SteelMint, India's total sponge iron exports during Jan-May'19 stood at around 392,412 MT in which exports to Bangladesh is about 239,325 (60.99%) & to Nepal at 57,981 (14.78%).

Sponge iron demand remains weak in Indian market

Following drop in furnaces productions, sponge iron demand in Indian domestic market dropped this in turn constant drop in prices since few days.

As per assessment made by SteelMint, the domestic sponge iron prices declined by INR 400-1,200/MT (USD 5-17) in a week & upto INR 1,500/MT (USD 21) in a month and fresh offers for C-DRI (78-80 FeM, mix material) are hovering at INR 15,500-15,700/MT (USD 217-220) ex-Rourkela in eastern region, INR 16,500-16,700/MT (USD 230-233) ex-Raipur in central region & INR 16,200-16,400/MT (USD 226-229) ex-Bellary in southern India; ex-works & excluding GST at 18%.