Indian Sponge Market See’s Slight Price Correction, D-o-D
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Today sponge market has registered a price correction of INR 50-200/MT D-o-D after the recent 2 years high in price levels.
Presently, FeM 78-80 C-DRI prices are hovering in the range of INR 16,400 -18,600/MT (USD 250-284) ex-plant.
According to the renowned manufacturers in Raipur, P-DRI are trading at INR 17,400-17,500/MT and Sponge DR-CLO at INR 19,200-19,400/MT ex-plant.
Rourkela, Odisha based manufacturers reported, FeM 80 C-DRI lump offers for Maharashtra, West India based buyers at INR 16,800-17,000/MT (ex-plant). While, for same place mix material deals mentioned at INR 16,400-16,600/MT. Also added few deals concluded to Raigarh at INR 17,600-17,700/MT FOR.
In Durgapur, West Bengal the manufacturers reported limited supply of sponge amid supportive demand for the material. However, post sharp hike the producers today have slightly cut prices by INR 100/MT to INR 16,700/MT for P-DRI & INR 17,200-17,300/MT for C-DRI.
In Bellary, Karnataka offers for FeM 80 C-DRI & P-DRI lump material are at INR 18,000-18,200/MT & 17,800-18,000/MT ex-plant, respectively. The small size manufacturers in the market reported FeM 80 P-DRI deal for Maharashtra at INR 17,500/MT ex plant.
As per market participants, price competition with scrap is likely to support Indian sponge market. They also added as demand is strong for both sponge & billet there are less scope for downward price trend.
Domestic sponge offers as on 16 Mar’17
| Particulars | C-DRI | D-o-D | W-o-W | P-DRI | D-o-D | W-o-W |
| Ex-Durgapur | 17,300 | - 100 | + 550 | 16,700 | - 50 | + 500 |
| Ex-Rourkela | 16,400 | 0 | + 400 | 0 | 0 | 0 |
| Ex-Raigarh | 17,800 | - 200 | + 800 | 16,800 | - 200 | + 800 |
| Ex-Raipur | 18,600 | + 100 | + 400 | 17,450 | - 100 | + 550 |
| Ex-Bellary | 18,100 | - 150 | + 500 | 17,800 | - 200 | + 300 |
| Ex-Hyderabad | 18,500 | - 100 | + 400 | 18,500 | - 100 | + 500 |
Prices in INR/MT
Source: SteelMint Research
