Daily Update: Indian Sponge & Billet Market

With strong demand in domestic market, Indian Sponge & billet offers further increased by INR 100-450/MT day on day.

Today, SteelMint’s price assessment for induction furnaces grade billet (size 125x125 mm) are reported at INR 25,500-27,800/MT (USD 395-431) ex-works, which was at INR 25,300-27,600/MT (USD 392-428) on 26 July 2017.

Further after increase in 78-80 FeM sponge offers, C-DRI is hovering in the range of INR 16,100-17,200/MT (USD 249-267) ex-work.

Few small size (100-300 TPD) sponge manufacturers in Central & East regions indicated that prices would remain on stronger end as there is supply crunch amid expensive raw material (Coal) and strengthening prices of key substitutes like scrap & pig iron. Notably, South African coal offers (RB2, 5500 NAR) are rose to USD 86-87/MT CNF India, which was at USD 76-77/MT in the first week of July, 2017.

Market Updates:

1.  Today in Raipur, couple of big plants did not open the prices due to unavailability of material, other small size plants are heard offering P-DRI at INR 16,100-16,200/MT ex-plant & excluding of GST at 18%.

2.  In West Bengal, Durgapur there are less number of sponge iron suppliers, the offers are assessed at INR 17,500-17,700/MT for C-DRI.

3.  Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 16,000/MT & billet at INR 25,300/MT ex-plant.

4.  BMM Ispat, South India's largest sponge iron plant has kept offers unaltered, FeM 80 P-DRI reported at INR 15,900/MT ex-plant.

5.  Sunvik Steels in Karnataka is offering FeM 80 & 82 C-DRI lumps are INR 16,300/MT and INR 16,700/MT ex-plant, respectively.

Indian sponge & billet reference prices as on 27 July 2017

Basic, ex-works prices & excluding of GST @ 18%
Source: SteelMint Research