As per the www.steelprices-india.com update on prices of sponge iron at four of the most important locations, it is evident that sponge iron makers have given up their hopes of achieving higher prices on demand revival of rebars due to anticipated pick up in construction activity after Pitra Paksh
Sponge iron makers had tried to increase prices but as buyers did not bite, major reduction of 1% to 2% has been reported.
Change is on 31st October as compared to 27th October 2012
In INR per tonne
On the other hand prices of imported scarp have gained about USD 15 per tonne to USD 20 per tonne over last 15 days and likely to go up further due to constraints on supply side resulting from incoming winter as well as disruption on East Coast of USA due to Hurricane Sandy for sure.
Indian induction furnaces based steel makers feed sponge iron along with scrap the divergent trends in prices of both brings about couple of interesting scenarios
If the present trend continues the gap between the sponge and imported steel scrap would widen and could lead to higher utilization of sponge in the feed mix and / or could lead to recovery in sponge prices in coming times
However, the lack of demand of finished product like rebar or TMT/QST, which has resulted in low capacity utilization of sponge plants, would weigh heavily on the pricing as well as the recent trend to utilize higher percentage of steel scrap for improving quality.
Thus the direction remains hazy…
Indian steel makers have a unique opportunity to hear Indian and global experts to understand the market dynamics and outlook at the “2nd Metal & Steel Scrap Summit” on December 3rd 2012 at the Palms Club in Gurgaon, which will be followed by half day exclusive “Buyer & Seller Meet” on December 4th for them to find reliable overseas steel scrap suppliers
As limited seats are available due to space constraint please book your spot TODAY!!!
Contact Ms Iha Jain
Mobile No +91 9582080801
Phone +91 124 4048993
Source - Strategic Research Institute