South Indian Manufacturers Offer Sponge at Competitive Prices

Karnataka, the third largest sponge iron producing state in India with a contribution of 9-10% in country's total DRI production.

Presently, the manufacturers in the state are offering sponge at competitive prices. Lower offer price, easy transportation and less voyage time are attracting buyers from across West & South regions of India.

For Instance, Offers for FeM 80 C-DRI lumps in Karnataka are at INR 15,000-15,200/MT. While, same grade material is being offered by Odisha based manufacturers at INR 14,800-15,000/MT. As the freight charges are higher (around INR 600-800/MT) from Odisha to Western India compared with Karnataka; the smelters in Maharashtra (Western India) are prefer sponge from Karnataka.

The suppliers in the state reported major deals for FeM 80 C-DRI to Mumbai at INR 16,300-16,500/MT FOR (excluding ED). Further, trades to Jalna at INR 14,800-15,000/MT on Ex-plant basis.

BMM Ispat, one of the major sponge producer of state, having capacity to produce 2,300 TPD (0.7 Mnt pa) sponge. The company is offering FeM 80 P-DRI lump at INR 15,000-15,100/MT ex-plant.

Another renowned manufacturer in the state namely Sunvik Steels who makes prime grade material (high metallization) offering C-DRI lumps - 80 FeM at INR 15,200/MT & FeM 82 at INR 15,600/MT ex-plant.

India is world’s largest sponge iron producer with an installed capacity of 47-48 MnT, In FY17 India’s sponge iron production increased by 6.5% to 25 MnT approximately. While, DRI (Sponge) exports increase by 76.42% in FY17 compared to FY16.