Last week, Bangladesh purchased large quantities of sponge iron from India. Many market experts believe that this is due to the lack of raw material on the ground for Indian steel mills.
India is also expected to resume purchases after the monsoon rains, currently it remains sluggish but there are expectations of a rebound in September after the monsoon season. Transportation is also disrupted due to weather conditions, resulting in long queues at ports. India may rush to procure raw materials after the monsoon, according to forecasts.
Currently, imported raw materials in Bangladesh are about $30 to $40 higher than local scrap. Sponge iron export offers have risen around $8-11/t in the previous weeks despite moderate demand, but on a long-term assessment, sponge iron prices have also fallen as demand is low. Price fluctuations were driven by changing market conditions and shifting demand dynamics, ranging from $363-365/t CPT Raxaul to $377-380/t CPT Benapole last week. Prices remain flat this week as well.
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