Sponge iron prices dropped in the range of INR 50-200/t in key locations today. Due to the ongoing downturn in steel prices in north India, specially Punjab, prices kept dropping as spot transactions remained low.
The result was a steady decline in both offers and bids due to selling pressure among suppliers. Fewer enquiries were made as price adjustments trigerred caution among market participants. According to sources, erratic price changes have impacted spot trade volumes.
About 17,920 t of sponge iron transactions were recorded today in India as against 21,490 t on 21 February.
Snapshots of key markets
- Rourkela: Suppliers were forced to maintain offers on the higher side following a significant increase in prices in Punjab, north India. In view of this buyers started to take positions. This, in turn, led to gains in spot trade volumes.
- Raipur: Limited trading activity was witnessed today. Sellers have booked sufficient quantities over the past few days and hence were not keen on reducing offers today. So the market remained slow.
- Bellary: Due to market volatility, slow demand was observed which resulted in a drop in sponge iron prices. Buying activity remained subdued as market participants have already booked sufficient volumes over the past few days.
- Durgapur: The market witnessed a marginal decline today; however, trades improved significantly. Sellers reduced offers on account of negative trends prevailing in the northern region.
- Ramgarh: Trades were limited today and prices declined in the eastern region. Spot trade remained limited resulting in offers softening further.
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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