IRON and STEEL
Indian Sponge iron export offers to Bangladesh continued down trend on account of falling prices in Indian domestic prices.
The current export offers for 78-80 FeM Sponge C-DRI lumps hovering at USD 270-275/MT CPT Benapole (dry port of India & Bangladesh), this is equivalent to USD 290/MT CNF Chittagong, Bangladesh. These export offers fell by USD 5/MT against last week's assessment. Domestic prices in India dropped by INR 1,000/MT (USD 14) W-o-W & INR 1,500-2,000/MT (USD 21-29) M-o-M.
As per manufacturers/suppliers from India, due to unclear duty structures in Bangladesh post budget, most of buyers have kept future bookings on hold; however the mills who didn't have stock are buying material in small parcels.
A purchase source from Bangladesh reported fresh purchase of about 500 MT Indian sponge iron at close to USD 275/MT CPT Benapole, equivalent to USD 290/MT CNF Chittagong.
The limited trade activities being reported for fresh scrap bookings as local steel makers in Bangladesh seeking clarity on the Budget's impact for the beginning of the new financial year.
On an average, India's monthly sponge iron exports to Bangladesh is about 30,000-40,000 MT, which grew significantly in Apr'19 and registered at 57,437 MT, this accounts around 55% from the total exports of 104,996 MT during Apr'19.