Sponge iron prices in India continued to rally on account of a surge in steel prices in the northern region, especially Punjab. Prices rose by INR 250-550/t in key locations. Producers kept prices higher on firm raw material prices. Although prices trended higher, demand continued to remain moderate, SteelMint notes.
About 13,070 t of sponge iron transactions were recorded today as against 21,200 t on 13 January.
Snapshots of key markets
- Rourkela: Supply shortage continued to support sponge iron prices and also nudged billet producers to quote higher prices. Sources are expecting sponge iron prices to remain strong on rising raw material prices.
- Raipur: Limited trading was observed in the market at higher offers. Sellers kept offers on the higher side and prices increased by INR 300/t owing to the upward trend in north India and strong demand for semis.
- Bellary: Lack of buying interest resulted in spot trade volumes remaining low. Buyers had placed sufficient orders over the past couple of days and hence decided to hold back their bids today.
- Durgapur: Sponge prices edged higher on strong sentiments prevailing in different regional markets and the hike in base price of OMC’s upcoming iron ore auction on 17 January. Prices rose by INR 350/t d-o-d.
- Ramgarh: The market saw moderate demand throughout the day, while trade activities remained firm. Buying interest, however, was low as offers remained on the higher side.
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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