Sponge iron prices fell by INR 50-300/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 billets prices. Spot trade decreased by 71% d-o-d, which had a negative effect on the market because there was little purchasing activity and bids were on the lower side.
About 5,210 t of sponge iron transactions were recorded today in India as against 17,840 t on 17 March.
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: No buying activity was observed. The market remained slow and prices of semi-finished steel declined. Prices offered by the sellers were not accepted in the market and buyers refrained from booking at offered prices.
- Bellary: Today’s sponge iron prices slightly dropped amid slow demand as well as minimal buying activity and enquiries, which have kept buyers away from the market.
- Durgapur: Overall market went downwards on bearish sentiments from northern region. Sellers reduced offers amid low buying observed throughout the day.
- Ramgarh: Due to low demand, there was limited bookings. In a gloomy market, sellers struggled to keep offers at higher levels.
Rationale –
This index has been derived based on transactions, offers, bids and an 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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