Sponge iron prices fell by INR 50-100/t in key locations of the country amid lack of buying enquiries due to weak sentiments in the spot market. This, in turn, prompted sponge suppliers in various regions to reduce offers.
About 19,100 t of sponge iron transactions were recorded today in India as against 13,060 t on 8 February.
Snapshots of key markets
- Rourkela: Trades remained below average. Market participants lacked trust in the direction of price changes. As a result, spot trading was considerably restricted. Price volatility persists and buyers are still buying as per immediate requirements.
- Raipur: Increase in buying activities was observed today at lower offers. Since limited booking was done in the past few days buyers showed some initiative in bookings.
- Bellary: Limited spot buying activity in sponge iron was seen and modest trade volumes were recorded. Participants are expecting further market correction as sales of semi-finished and finished steel are limited.
- Durgapur: The market fell slightly because of bearish sentiments in the northern region. Sellers reduced offers amid moderate booking from buyers.
- Ramgarh: Due to high volatility in the northern region, sales of semis were affected in the regional market. Sellers seemed to be struggling to find buyers even with lower offers. The market saw lack of buying confidence due to which transaction volumes remained low.
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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