With producers quoting higher, sponge iron prices in India increased by INR 100-400/t in key locations on 1 March, 2023. SteelMint understands that despite the positive outlook, sponge iron demand remained modest as buyers resisted high offers, which ultimately led to limited spot trade volumes in domestic markets.
About 20,700 t of transactions in sponge iron were recorded today in India as against 34,410 t on 28 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: Moderate trading activities were observed in the market at higher offers. Sellers were not willing to quote lower offers. Hence, traded volumes also remained moderate. Firm sentiments in north India kept prices on the higher side.
- Bellary: Sponge iron prices rose today supported by a positive trend in the semi-finished and finished steel markets, while buying activity remained moderate since buyers had placed sufficient orders over the last few days.
- Durgapur: Prices rose on account of increasing prices in north India but fell slightly post midday. Spot trades were limited as buyers remained cautious about bookings.
- Ramgarh: The market saw moderate demand throughout the day, while trade activities remained firm.
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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