Sponge iron prices fell by INR 100-350/t in key locations of the country today. Following the continuous decline in spot demand for semi-finished steel products, prices dropped significantly. Low demand for sponge iron was due to the significant drop in billet prices. Spot trade decreased by 47% d-o-d, which had a negative effect on the market because there was little purchasing activity and bids were on the lower side.
About 6,450 t of sponge iron transactions were recorded today in India as against 12,100 t on 10 February.
Snapshots of key markets
- Rourkela: Prices dropped all day as a result of weak spot trading. The price correction seen in key markets was the main cause behind low transaction volumes.
- Raipur: No buying activity was observed. The market remained slow and prices of semi-finished steel declined. Prices offered by the sellers were not accepted in the market and buyers refrained from booking at offered prices.
- Bellary: The current decline in semi-finished steel prices has had a substantial influence on sponge sales and demand, leading to sluggish buying activity.
- Durgapur: The market continued to fall due to sluggish steel demand and sellers reduced offers as a result. Spot trades were moderate, with no significant booking seen from buyers.
- Ramgarh: The market continued to fall further and so sellers had to offer material at low prices. Meanwhile, buyers remained cautious and opted to wait and watch.
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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