Prices of sponge iron decreased by INR 100-500/t in key markets across the country. Amid the continuous decline in spot demand for semi-finished steel products, sponge prices dropped significantly. Low demand for sponge iron resulted from a substantial drop in billet prices. Little buying activity was seen in the market and fairly low bids were heard.
About 12,500 t of sponge iron transactions were recorded today in India as against 11,770 t on 14 March.
Snapshots of key markets
- Rourkela: The Odisha Drivers’ Association has gone on a strike from today. Bus services have been affected at Cuttack’s Badambadi bus stand due to the strike. However, no major impact was seen in the market. Spot trades continued to be on the lower side, with buyers booking material for immediate use and at lower prices.
- Raipur: Prices dropped as the market remained slow and a few deals were heard at lower price levels in the second half of the trading session. Prices of semi-finished and finished long steel also remained subdued on account of decreasing steel prices in the northern region.
- Bellary: Weak demand weighed on sponge iron prices as the decline in semi-finished and finished steel demand had a substantial impact on sponge iron demand. As a result, trading volumes fell sharply.
- Durgapur: The market continued to fall amid moderate trades throughout the day. Bearish sentiments in the northern region led to offers edging lower.
- Ramgarh: Spot buying was low today as buyers remained cautious due to weak market sentiments and poor finished steel sales.
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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