Indian Sponge Iron Export Demand Recovers with Fresh Deals

Sponge iron export demand strengthened with fresh deals concluded to Nepal as well as during last week for Bangladesh. The both neighbours are the key buyers of steel made by mid sized mills in eastern India.

As per trade sources, nearly 15,000-20,000 MT sponge iron export deals were concluded in last 7-10 days to the Nepal & Bangladesh.

In which fresh deals of around 7,000-8,000 MT (equivalent to 3 rakes) reported to Nepal, at an average price of USD 245-247/MT ex-works, loaded to wagon in eastern region for 80 FeM, 100% lumps & bag packed material. The freight cost to Nepal would be around USD 25-30/MT CFR Jogbani border, Nepal.

In line Bangladesh, the last deals for around 8,000-10,000 MT sponge iron was reported at USD 270-275/MT CPT Benapole(dry port of India & Bangladesh), this is equivalent to USD 285-290/MT CFR Chittagong, Bangladesh.

However, with the rally in Indian domestic offers the latest offers to Bangladesh have increased and stood at around USD 285/MT CPT Benapole, this landed cost Bangladesh would be around USD 300/MT CFR Chittagong, Bangladesh.

The exporters from eastern India stated that, buyers in Bangladesh are cautious now for fresh bookings on increased prices as imported scrap offers drop sharply in recent deals. Latest price assessment for containerized Shredded 211 scrap from USA and UK/Europe stands at around USD 283-285/MT CFR Chittagong, dropped further USD 7-8/MT in last 3 days.