Sponge iron prices dropped in the range of INR 150-450/t in key markets today. Due to the ongoing downturn in steel prices in north India, specially Punjab, prices kept dropping as spot transactions remained restricted.
The result was a steady decline in both offers and bids and mounting pressure on 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 9,850 t of sponge iron transactions were recorded today in India as against 14,710 t on 23 February.
Snapshots of key markets
- Rourkela: Lower bids and erratic prices in north India caused prices to trend lower. Buyers remained wary and bought material at lower prices. Hence, prices kept edging down. Furthermore, despite reduced offers, trades were limited due to lack of confidence among market participants.
- Raipur: Limited trading activity at lower price level were seen today. The market remained slow and demand for semi-finished and finished steel was subdued.
- Bellary: Sponge iron prices were impacted by lacklustre demand; offers decreased as a result of weak enquiries and lack of buying interest, which led to weak spot trading activity.
- Durgapur: The market continued to fall amid sluggish demand for finished steel in the region. Sellers reduced their offers because of bearish sentiments in north India.
- Ramgarh: The market saw moderate demand throughout the day and trading activities remained limited. Buying interest, however, was low as offers were slightly 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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