Indian sponge iron prices fell in the range of INR 50-150/t in key locations. Prices in Raigarh, Hyderabad and Mandi increased by INR 100/t. However, spot trades remained limited which exerted pressure on prices. As a result, suppliers were under selling pressure which led to a decline in offers and bids.
As market participants became more cautious, fewer inquiries were received. Uncertain price movements, according to sources, impacted spot trade volumes.
About 12,500 t of sponge iron transactions were recorded today in India as against 22,000 t on 6 March.
Snapshots of key markets
- Rourkela: Prices trended down on lower bids. Buyers were cautious and procured material as per immediate needs and on lower offers. Thus, prices continued to soften.
- Raipur: Limited trading activity at lower price levels were heard today. The market remained slow and demand for semi-finished and finished steel was subdued.
- Bellary: Sponge iron prices remained firm today despite moderate buying activity. Demand was muted on higher offers throughout the day as buyers anticipated further market correction.
- Durgapur: Spot trade was moderate as bearish sentiments in the northern region weighed on the market and bulk bookings were absent.
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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