Sponge iron prices dropped by INR 100-350/t d-o-d on 6 January, 2023 across key markets in India amid uncertain future trends and limited trading as buyers were engaged in need-based procurement to meet immediate requirements. Spot buying interest was also weak.
Recent price fluctuations have made it difficult for buyers to plan ahead and make long-term purchases. Hence, market participants are now waiting for prices to stabilise before making any further decisions.
About 24,600 t of sponge iron transactions were recorded today as against 20,850 t on 5 January.
Trade dynamics-
- Rourkela: CDRI (FeM 80%) prices were assessed at INR 32,800/t exw. About 3,200 t of PDRI (FeM 77-78%) trade was recorded from Odisha and deals were concluded on DAP Raipur basis. Participants are anticipating that sponge iron availability in next 8-10 days will be a concern. As of now, many players are overbooked and purchase enquiries are on a lower side.
- Raipur: PDRI (FeM 80%) prices were assessed at INR 32,200/t exw. Bulk buying was seen at lower prices as most buyers have already booked sufficient quantity in past few days and hence, there is less acceptability of higher prices. Also, market sentiments are fluctuating which has induced further uncertainty amongst buyers.
- Bellary: PDRI (FeM 80%) prices were assessed at INR 30,250/t exw. CDRI prices stands at INR 31,750/t exw. With moderate buying activity, offers remain range-bound as producers anticipate continued gains in sponge prices in the coming days.
- Durgapur: PDRI (FeM 78%) prices were assessed at INR 32,000/t DAP. Trade was limited throughout the day due to soft demand and prices declined by INR 350/t.
- Ramgarh: PDRI (FeM 78%) prices were assessed at INR 30,800/t exw, and CDRI at INR 33,300/t exw. The market was less active as buyers opted for a wait-and-watch mode. Demand was low as the market remained dull in northern region especially Mandi Gobindgarh.
Overall, the situation is expected to remain uncertain until prices stabilise. Buyers are likely to continue with their cautious approach and focus on need-based procurement to fulfil immediate requirements.
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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