SteelMint’s benchmark assessment for pellet sponge (P-DRI, FeM 80%) in Raipur fell by INR 200/t to INR 29,800/t exw on 27 Jul’21, following a somewhat similar drop in billet prices. In terms of outlook as well demand-supply, a majority of sponge makers have sufficient orders in hand and supply has also lessened. Hence, a major fall in prices can be safely ruled out.
About 1,500 t of P-DRI deals were reported at INR 29,800-29,900/t on exw and FoR Raipur basis.
Prices of DR CLO grade sponge iron remained strong and were recorded as stable with offers at around INR 33,000-33,200/t exw.
Sponge P-DRI (FeM 80%) prices in Karnataka’s Bellary fell by INR 200/t on 27 Jul’21. Sponge C-DRI prices, too, declined by INR 100/t in today’s trade, as per reports. Spot trading volumes remained limited, with buyers waiting for clearer market directions.
- Around 2,000 t of P-DRI deals were confirmed at INR 29,000-29,100/t against offers at INR 29,300-29,400/t exw.
- Offers for C-DRI stand at INR 29,900/t ($402) and around 500 t of deals were reported.
SteelMint’s price assessment for sponge C-DRI (FeM 80%, mix material) stands at INR 31,350/t ($421) exw-Rourkela in Odisha, down by INR 50/t d-o-d. In all, about 2,320 t of deals were reported by local manufacturers on 27 Jul’21. It was learnt that demand remained limited today as buyers had placed sufficient bookings yesterday. Moreover, slight price corrections in billet resulted in low buying interest for sponge iron.
Iran’s Mines and Metals Company (MME) has established China’s first gas-based sponge iron production unit using the Persian Direct Reduction (PERED) technology, the Iranian Mines and Mining Industries Development and Renovation Organisation (IMIDRO) recently reported. The deal for the construction of the first gas-based sponge iron plant was concluded between China’s CSTM Company and MME as the licensed owner of PERED technology. With a capacity of 300,000 t, the plant has been set up in China’s Taiyuan city.
An Iranian mill has concluded an export tender of 30,000 t of sponge iron for China, sources reported. The tender was concluded at around $395/t FCA BIK port and the shipment is scheduled for Aug’21.
Iran’s DRI production increased by 7% y-o-y to reach 8.59 mn t in the first three months of the current Iranian year (21 Mar-21 Jun). Mobarakeh Steel Company remained the largest producer at 2 mn t followed by KSC at 1 mn t.
Pellet sponge (P-DRI, FeM 80%) prices in the Raipur market rose by INR 300/t to INR 30,000/t exw on 26 Jul’21. Prices headed north following active demand as well as increase in billet prices. Sources expect prices to remain strong due to slight supply shortage. The current offers were last recorded on 25 Jun’21.
About 4,000 t of P-DRI deals were reported at INR 29,600-30,000/t on exw and FoR Raipur basis.
Prices of DR CLO grade sponge iron rose further over limited supplies and deals have been reported at INR 32,700-32,900/t as against offers at around INR 33,000-33,200/t exw.
SteelMint’s assessment for Rourkela sponge iron (FeM 80%) prices are up by INR 400/t on 26 Jul’21. Current offers for C-DRI stand at INR 31,400/t exw-Rourkela.
- Confirmed trade for about 5,200 t of sponge iron were concluded in the range of INR 31,000-31,400/t exw-Rourkela.
- Prices increased due to active demand and rise in billet prices by up to INR 200/t d-o-d.
- Sources reported that a rake of 1,260 t of C-DRI mixed material export deal to Nepal at INR 31,300-500/t ($420-423) exw on 24 Jul’21.
Sponge iron prices in Karnataka’s Bellary declined by INR 100-200/t in today’s trade.
Current offers for sponge C-DRI stand at INR 30,000/t ($403), down by INR 200/t d-o-d. A few bids have been reported at around INR 29,800-29,900/t exw-Bellary. A total of about 500 t C-DRI deals have been reported by local manufacturers.
Also, about 2,600 t of P-DRI deals were confirmed at INR 29,200-29,400/t against offers at INR 29,500-29,600/t, exw.
Market sources said that prices are falling due to poor offtake of sponge iron from Maharashtra and Goa with the onset of monsoons.
SteelMint’s benchmark pellet sponge (P-DRI, FeM 80%) prices fell by INR 100/t to INR 29,700/t exw Raipur on 23 Jul’21. Prices dropped slightly as bids were lower today along with soft buying interest due to the plunge in ingot and billet prices by up to INR 450/t d-o-d.
About 2,000 t of P-DRI deals were reported at INR 29,600-29,700/t as against offers at INR 29,800-30,000/t exw and FoR Raipur. A few bids were reported at INR 29,500/t but the deals couldn’t be confirmed till the time of publication.
Prices of DR CLO grade sponge iron stayed firm owing to limited supplies and the trade reference price stood at INR 32,700-800/t as against floated offers at around INR 33,000/t exw.
Sponge iron prices in Odisha’s Rourkela fell by INR 100/t on 23 Jul’21. Current offers for C-DRI (FeM 80%, mix material) stand at INR 30,900/t.
Around 2,020 t of deals were confirmed at INR 30,700-31,000/t exw-Rourkela.
According to sources, declining billet prices, which slipped by INR 400/t over weak sentiments in north India, triggered the fall in sponge iron prices.