Sponge iron prices remained unpredictable today despite rising trends in the morning which were not matched by buyers’ expectations leading to a slight increase in offers across the country.
About 21,090 t of sponge iron transactions were recorded today in India as against 16,300 t on 25 January.
- Rourkela: Prices remained stable today. However, trades were still less than average, resulting in limited enquiries. Market participants were low on confidence about booking material due to volatile price movements. This limited spot trading, with buyers engaging in need-based bookings across the region.
- Raipur: Compared to 25 January, moderate trade was seen at higher offers. Offers were on the higher side. Due to purchasers’ expectations of lower pricing, there was little buying activity at higher prices. Low acceptance and a slight price rise were witnessed. Although the market was quiet today due to declining price trends in the northern region and brisk bookings by purchasers over the last few days, sponge iron prices increased by INR 200/t.
- Durgapur: Prices initially edged up on account of rising prices in north India but fell later on. Spot trades were limited as buyers remained cautious about bookings. Prices remained largely stable, rising marginally by INR 50/t d-o-d.
- Bellary: Buying activity was spurred by rising trends and sentiments, which led to a relative rise in trade volume. According to sources, the market is likely to remain turbulent over the next few days.
- Ramgarh: Average transactions were noticed in the region amid price fluctuations. Market participants are wary ahead of the upcoming General Budget on 1 February.
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
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