IRON and STEEL
Sponge iron export offers from eastern India to Bangladesh have again dropped by USD 10/MT following decline in domestic prices by INR 500-1,000/MT (USD 7-14) in a week's time.
During last week the sponge export offers to Bangladesh evaluated at around USD 340/MT, is now hovering at USD 330/MT CNF Chittagong.
The export prices fell by USD 10/MT as against last week closing and total of USD 25-30/MT if compared with short term peak on 10th Feb'19 at around USD 355-360/MT CNF Chittagong.
As per exporters, buying interest is expected to improve as current offers are too competitive if we compare with imported scrap prices to Bangladesh which is hovering at USD 345/MT CNF Chittagong for shredded grade. Offers have come down by USD 10-15/MT W-o-W.
They also stated that "scope is limited for further downtrend in sponge prices as standalone Indian producers are running under pressure of high input cost too. However if raw material prices correct, the producers may be reluctant to cut offers" they added.
India's sponge iron exports to Bangladesh more or less firm M-o-M in Jan'19, according to provisional data available with SteelMint. India has exported about 44,743 MT sponge iron to Bangladesh during Jan'19 which is similar as against 44,878 MT in Dec'18.
However in comparison with overall sponge exports, it fall by around 8,500 MT (12%) in Jan'19 to 60,545 MT in comparison with 68,988 MT in Dec’18.
The exports have been slump in line with limited sourcing by Nepal's mills as the exports to Nepal plunged by 43% M-o-M in Jan'19 and registered at 7,975 MT as compared to 13,858 MT in Dec'18.