India: P-DRI Manufacturers Reel Under Pressure on High Input Cost

Presently the Pellet Sponge manufacturers in Central & Eastern India are reeling under pressure of lowered prices than the cost of production.

The margins remained low from Raw Pellet to Sponge P-DRI in major markets like - Raipur & Durgapur for standalone manufacturers. SteelMint in data analysed that standalone sponge plants are experiencing gap of INR 1,500-2,000/MT between cost of production of sponge P-DRI and selling price in domestic market.

The sources here mentioned that, sponge demand is weak on account of lower exports & limited domestic demand which in turn has resulted in price fall in both raw pellet & sponge pellet which in turn has led to low margins.

If we compare current cost of productions, the selling price of Sponge P-DRI should be not less than of INR 21,500/MT ex-Raipur & INR 20,500/MT in Durgapur.

However as per assessment, presently the trades are happening at INR 19,700-19,900/MT ex-Raipur & INR 18,100-18,300/MT in Durgapur, which are lower by INR 1,500-2,000/MT (USD 21-28) than the cost of productions of standalone sponge plants.

For an outlook purpose a key price trend setter in Durgapur, East India stated “there is no scope for further major fall in prices, if we looking current input cost against cheaper sponge trade price. However as the buyers purchase interest is almost nil, we are reluctant to cut offers.”

Manufacturers from Southern India quoted, “We are planing to curtail production to meet demand-supply chain as high stock is forcing us to reduce offers day-by-day. We are unable to run units with current cost of production versus lower selling prices.”

News No: 3993
Date: 2019/03/13 - 08:05
News Source: SteelMint

India  Manufacturers  Pellet Sponge  India  Durgapur 


Leave a Comment:


India: SAIL's Pig iron Auction Receives Improved Response on Reduced Base Prices

Company reduced base price by INR 300/MT in today's auction and nearly 42% material got booked.

Indian Ferro Chrome Offers to China Find Acceptability after Going Higher

Indian Ferro Chrome prices remains unchanged in the domestic market amid sluggish market conditions. However, prices in the global market have risen.

India: Vizag Steel Floats Billet Export Tender to Nepal

Rashtriya Ispat Nigam Limited (RINL)- the state-owned steel maker under the Ministry of Steel, has invited tender for export of 8,127 MT Billets (3 rakes) to Nepal. The minimum offered quantity for each product is 2,709 MT (1 rake).

India Coking Coal Imports Rise by 5.35% in Feb’19; Imports from USA Fall By 19%

Indian metallurgical coal imports have increased by 5.35% to 4.5 million tonnes (MnT) in Feb’19, as compared to 4.27 MnT in Jan’19, as per the latest vessel lineup data compiled by CoalMint Research.

Pellet Inquiries from China Remain Dull as Mills Prefer Low Grade Ore

According to the market participants report to SteelMint, Chinese mills continue to prefer low-grade iron ore which in turn kept inquiries for Indian pellets on the lower side. Even pellet port stocks in China have registered an increase in the last couple of weeks.

Iran to Ship First HRC Consignment of 32,000 MT to India - Sources

As per recent update received to SteelMint, Iran is all set to ship its first consignment of HRC to India. As per the bulk vessel data maintained with SteelMint an Iranian steel mill has shipped 32,000 MT HRC.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners