Sponge iron prices fell by INR 50-250/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 20% d-o-d, which had a negative effect on the market because there was little buying activity and bids were on the lower side.
About 7,920 t of sponge iron transactions were recorded today as against 9,850 t on 24 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: The market remained sluggish, with no significant trades recorded. Prices fell further compared to the previous trading day.
- Bellary: Sponge iron demand was weak throughout the day amid slow finished steel movement, which also led to reduction in offers.
- Durgapur: The market was almost stable today even as spot trading activities were slow as sellers held their material in anticipation of a price rebound in the coming days.
- Ramgarh: The market was volatile throughout the day and trading activities were weak. Buying interest, too, was nothing to write home about.
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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