Prices of sponge iron increased by INR 100-200/t in key locations today, while prices in Bellary, Mandi and Hyderabad witnessed a slight drop of INR 50-150/t. Even though prices increased in some markets, very few deals were heard throughout the day. Buyers only focused on need-based procurement.
Interest in spot purchase was low. Furthermore, transaction volumes remained low due to unpredictable price movements. Market participants were waiting for prices to stabilise.
About 17,840 t of sponge iron transactions were recorded today in India as against 20,550 t on 16 March.
Snapshots of key markets
- Rourkela: Prices remained stable throughout the day amid lower purchase enquiries and significant adjustments in steel prices in north India. Spot trading slowed down as a result. Having placed enough orders yesterday, a few major buyers decided to hold back their purchases today. Due to a decrease in spot trade volumes d-o-d, demand at current offers remained low.
- Raipur: Sponge iron prices rebounded amid positive market outlook and higher offers, although trades remained moderate. Sellers increased their offers marginally, as per latest steel price movement in north India.
- Bellary: Bulk buying observed at lower prices. Market showed good trade activities today, as limited booking was done in past few days buyer’s have shown some initiatives to book orders currently.
- Durgapur: Spot trades were dull as the market fell creating a negative sentiment.
- Ramgarh: Prices trended down. Buyers were cautious and sourced material at lower offers. Prices continued to fall throughout the day.
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
Leave a Reply