Due to firm buying interest, which resulted in improved trading activity throughout the day and led to a slight rise in demand for semi-finished steel products, daily sponge iron domestic prices increased by INR 150–300/t in major locations.
In addition, suppliers were pushed to maintain offers on the higher side following a significant increase in prices in Punjab, north India. Prices in Bellary witnessed a marginal drop of INR 100-150/t as buyers resisted booking material at higher offers, which ultimately forced suppliers to reduce their offers.
About 20,850 t of sponge iron transactions were recorded today in India as against 16,860 t on 4 January.
Trade dynamics
- Sponge iron CDRI (FeM 80%) prices in Rourkela were assessed at INR 32,900/t exw. About 600 t of sponge iron PDRI (FeM 78-79%) trade was recorded in Odisha. Deals were concluded on DAP Raipur basis.
- Sponge iron PDRI (FeM 80%) prices in Raipur were assessed at INR 32,450/t exw. Active buying was seen in at higher price levels. Prices improved on good movement in semis and finished steel backed by the upward price momentum in north India.
- Sponge iron PDRI (FeM 80%) prices in Bellary were assessed at INR 30,400/t exw. CDRI prices stand at INR 31,850/t exw. Buying activity was on the ascendant as a result of fluctuations in the semi-finished market that boosted trades further.
- Sponge iron PDRI (FeM 78%) prices in Durgapur were assessed at INR 32,350/t DAP. Trades remained moderate throughout the day as offers remained supported due to price rise in the northern region. Sponge iron offers were mostly stable with a marginal rise of INR 50/t.
- Sponge iron PDRI (FeM 78%) prices in Ramgarh were assessed by SteelMint at INR 31,050/t exw, and CDRI at INR 33,500/t exw today. Mills increased offers; however, trade volumes remained average with limited buying. Buyers seemed cautious and held their positions in a continuously rising market.
With sizeable trade volumes being reported from across markets in different states, sources are expecting sponge iron prices to remain stable.
Rationale –
This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative
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