Sponge iron prices fell by INR 50-300/t in Rourkela and Bellary, while prices in Raipur, Durgapur and Ramgarh witnessed an uptick of INR 100-350/t today. The decline in sponge iron prices can be attributed to several factors. One reason was uncertain price movements followed by limited trades, as buyers took a cautious approach and engaged only in need-based procurement to meet immediate requirements. This led to weak spot buying interest and a decline in trade volumes.
In addition, market uncertainty also contributed to the sluggishness in trade activity, as market participants were unsure about the direction of prices and therefore hesitant to make bulk purchases. Going ahead, market participants are hoping for stability in prices.
About 11,050 t of sponge iron transactions were recorded today in India as against 24,600 t on 6 January.
Trade dynamics
- Rourkela: CDRI (FeM 80%) prices were assessed at INR 32,750/t exw. There was lack of buying interest and spot trade volumes remained low. Buyers booked sufficient orders over the past couple of days and hence decided to hold back their bids.
- Raipur: PDRI (FeM 80%) prices were assessed at INR 32,350/t exw. Limited buying was seen today in Raipur. Despite minimal trading activity prices remained strong backed by positive sentiments and acceptance of higher price levels. The market improved by INR 150/t today compared to yesterday. The outlook seems to be bright with more bookings expected in the coming week.
- Bellary: PDRI (FeM 80%) prices were assessed at INR 30,000/t exw. CDRI prices stand at INR 31,450/t exw. Spot buying activity for sponge iron remained low as buyers anticipated correction in prices.
- Durgapur: PDRI (FeM 78%) prices were assessed at INR 32,350/t DAP. Trades were low throughout the day but offers increase due to stable trends in the northern region which nudged sellers to raise their prices. Sponge iron prices rose by INR 350/t today.
- Ramgarh: PDRI (FeM 78%) prices were assessed at INR 30,900/t exw, and CDRI at INR 33,400/t exw.
However, market participants still lack clarity on price movements.
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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