Indian Sponge Iron Export Offers Stable on Stronger Rupee
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Sponge iron export offers from eastern India remain unmoved over strong Rupee against US dollar although domestic sponge prices witnessed a slump.
The Indian rupee further gained and was trading at 70.5 as against last week at 71.9 against a US dollar. Meanwhile in this duration domestic sponge prices fell by INR 300-600/MT (USD 4-9). Hence following these factors, the export offers maintained stability.
The current offers are similar against assessment in the beginning of week at close to USD 345/MT CPT Benapole (dry port of India & Bangladesh), this is equivalent to USD 365/MT CFR Chittagong, Bangladesh.
As per exporters based in Kolkata, small parcels have been sold couple of days ago at around USD 345/MT CPT.
Imported Scrap Offers Down
In recent call, SteelMint learned that imported scrap offers to Bangladesh slump by close to USD 10/MT (W-o-W) due to weak demand for scrap among the Asian markets. Although, the country’s local market remained almost unchanged and awaiting ahead of general elections in the country, which are scheduled on 30th Dec'18.
Offers for containerised Shredded scrap reported to be USD 365-368/MT, CFR Chittagong as against last week at USD 375-378/MT.
Further, the offers for HMS 1 grade also fell to USD 340-345/MT, CFR Chittagong. Meanwhile limited offer were reported for P&S scrap and assessment is at USD 370-375/MT, CFR.
Sponge iron Imports Surge
Following the rising melting capacities in Bangladesh, the imports of raw material is at picking mode. Bangladesh steel production is depend about 50% in domestic raw materials (ship breaking & local melting scrap), while remaining is made through the melt of imported scrap & sponge iron.
As per custom data maintained by SteelMint, India exported about 255,463 MT sponge iron during Jan-Sep'18, surge by 53% Y-o-Y, which was about 166,999 MT during same preceding last year.
However on monthly comparison it fell slightly owing to seasonal slowdown demand in Bangladesh. India exported about 21,584 MT sponge iron during Sep'18, fall at close to 10% as against 24,129 MT in Aug'18.
