- Increased inventory pressure prompts price cuts
- Transaction volume rises d-o-d amid price drop
Sponge iron prices in India decreased by INR 50-300/tonne (t) d-o-d across regions today due to subdued market sentiment.
Lacklustre demand in the recent past had led to a build-up of stocks, and the resulting inventory pressure prompted price reductions today. Following the price drop, there was an improvement in the transaction volume d-o-d.
PDRI prices closed within the range of INR 22,400-25,900/t, while CDRI was assessed at INR 24,800-30,100/t.
Transactions of approximately 15,500 t were recorded today, up from 6,700 t on 26 May.
Rationale
Prices have 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%.
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