Sponge iron prices in India fell by INR 250-300/t in key locations as buying interest remained moderate throughout the day. However, spot trades rose significantly by 41% d-o-d because of the rebound in steel prices in the latter half, which saw market participants taking positions.
About 22,300 t of sponge iron transactions were recorded today as against 15,800 t on 9 January.
Snapshots of key markets
- Rourkela: Trades improved slightly but still remained less than average. There was lack of confidence among market participants as regards price movements. Therefore, spot trades remained somewhat limited. Buyers are booking material as per requirements even as price volatility continues.
- Raipur: Substantial trading activity was witnessed today. There was a steep fall in the market, with prices declining by INR 300/t compared to yesterday. Overall the market remained slow with respect to price movements and bulk orders were booked at lower rates.
- Bellary: Moderate demand for sponge iron was accompanied by declining offers as a result of fewer buyer enquiries, and the sponge iron market as a whole remained slow.
- Durgapur: Subdued demand was reported and sellers reduced offers as raw material prices declined amidst poor demand.
- Ramgarh: Trading activities were muted as buyers seemed to be on a wait-and-watch mode due to an unpredictable market scenario and price movements.
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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