Indian sponge iron prices fell by INR 50-250/t in key locations owing to sluggish trends and price volatility. However, prices in the Odisha region went up by INR 100/t as manufacturers raised offers in the second half of the trading session amid a price recovery in the northen region.
Prices fell across regions on limited trade and only need-based bookings took place. Buying interest in the semi-finished steel market remained dull today. Spot buying interest totally hinges on the requirements of market participants, sources informed SteelMint.
About 8,800 t of sponge iron transactions were recorded today in India as against 20,710 t on 20 January.
Snapshots of key markets-
- Rourkela: Prices fell on limited trade and lack of buying interest among participants.
- Raipur: The market remained sluggish with no trade heard. Offers quoted in the market were at the lower side but buyers are bidding very low rates, resulting in no trading activities today. Prices decreased by INR 200/t, however, buyers refrained from buying at the offered levels on expectation of a fall of prices in the near term.
- Bellary: Limited spot buying activity was noticed d-o-d. Buyers anticipated a further price correction as sales in finished steel are not supportive.
- Durgapur: Spot trades were lower as buyers are silent in this falling market. Prices declined because of a price correction in the northern region.
- Ramgarh: Unpredicted price movement lead to subdued demand. Also, trading activities remained slow in the region.
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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