- Chennai market goes contrarian, shows downtrend
- Tight supply spurs active restocking by buyers
Indian sponge iron prices moved up by INR 50-550/t today in key markets, while only Chennai showed a slight downtrend of INR 100/t d-o-d. With today’s increase, prices have shown a three-day rally.
PDRI prices were assessed at INR 22,200-26,100/t at close of trading, while CDRI tags stood at INR 24,800-29,000/t.
The sponge iron market witnessed a continued rise in offers today, driven by active buying interest. The price increase was primarily attributed to a shortage of material, prompting sellers to raise their offers. Buyers, anticipating further tightness in supply, responded by actively stocking up on available material.
Transactions of 22,900 t were recorded in the country, a deep drop compared to 7,800 t on 7 July.
Rationale
Prices have 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 here for detailed methodology
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