Indian sponge iron prices fall significantly in Aug'21
Sponge iron (P-DRI and C-DRI) prices across major markets in India saw a noticeable drop in Aug’21. This was mainly due to decreasing raw material (iron ore and pel...
Sponge iron (P-DRI and C-DRI) prices across major markets in India saw a noticeable drop in Aug'21. This was mainly due to decreasing raw material (iron ore and pellets) and semi-finished steel prices in India and weak demand for sponge iron, SteelMint understands.
In Aug'21, SteelMint recorded total trades of 77,500t P-DRI in Raipur market, nearly 76,100t in Bellary (including CDRI) and 50,800t trades of C-DRI in Rourkela.
Price movements across key markets
- Sponge P-DRI prices in Raipur, Chhattisgarh were assessed at INR 30,700/t exw, beginning of August. In mid-August, prices reached INR 31,900-32,000/t exw while these dropped to around INR 29,300-29,600/t exw-Raipur, towards the end of August, as per SteelMint's assessment.
- Prices of sponge C-DRI in Bellary, Karnataka stood at INR 30,500-30,700/t exw in early-August, which moved up to INR 31,200-31,300/t exw in mid-August. By the end of the month, SteelMint assessed C-DRI prices dropping to INR 29,800-30,000/t exw.
- Sponge P-DRI prices in Bellary were assessed at INR 29,200-29,400/t exw at the beginning of August but which fell by INR 1,000/t to INR 28,200/t in end-August.
- In Rourkela, Odisha, sponge iron (C-DRI, FeM 80%) prices were recorded at INR 32,500 exw in early-August, as assessed by SteelMint. In mid-month, prices remained stable at INR 32,500-33,000/t exw. At the end of August, prices were assessed at INR 30,800-31,000/t exw.
Key highlights for Indian sponge iron market in Aug'21
- Iron ore prices in Odisha drop: SteelMint's weekly Odisha iron ore fines Fe 62% index closed at INR 6,900/t, ex-mines, including Royalty, DMF & NMET on 28 Aug'21, falling by INR 1,800/t m-o-m.
- Domestic pellet prices plunge to six-months low on falling export realisations: SteelMint's bi-weekly iron ore pellet (Fe 63%) index for the key central Indian market of Raipur, is currently trading at INR 11,800/t DAP Raipur on 3 Sept, lower by INR 2,500-3,000/t m-o-m.
- CG sponge producers reduce sourcing from NMDC: Chhattisgarh-based sponge iron plants and secondary steel producers decreased iron ore sourcing from NMDC in August. According to SteelMint data, NMDC's iron ore rake movements to Chhattisgarh-based units were recorded at 41 in August as compared to 66 in July, a decrease of 36% m-o-m.