Daily sponge iron prices increased by INR 400-700/t in major locations of the country due to improved buying interest, which resulted in improved trading activity throughout the day and led to a slight increase in demand for semi-finished steel products. Furthermore, following a significant increase in prices in Punjab, north India, suppliers were pushed to maintain higher offers.
About 13,760 t of sponge iron transactions were recorded today in India as against 17,500 t on 15 February.
Snapshots of key markets
- Rourkela: Market participants booked material as per requirements. Several players in the market adopted a wait-and-watch approach, which resulted in limited spot trades.
- Raipur: Buying activities in the market remained moderate today at higher offers. Buyers were hesitant to book material at higher offers.
- Bellary: The continuous rise in steel prices has driven up sponge iron prices and, in turn, has generated active demand thereby boosted trade volumes.
- Durgapur: The market went higher on account of rising prices in the northern region and the active response seen in the ongoing OMC iron ore auctions.
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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