Sponge iron prices are still volatile in key markets even as steel prices have edged up. Spot trading remained limited today and offers fluctuated across regions. Despite the rise in prices, participants continued to engage in need-based procurement.
A total of 19,100 t of transactions were recorded today as against 9,170 t on 28 March.
Snapshots of key markets
- Rourkela: Prices increased modestly today. However, transactions were still lower than average, resulting in fewer inquiries. Because of volatile price swings, market participants were hesitant to book material on expectations of further market correction.
- Raipur: The market moved slowly today. Sponge Iron prices decreased marginally due to limited movement in the market. The north Indian market remained slow and offers fell d-o-d. Moderate trading was witnessed at lower prices.
- Bellary: Sponge iron prices rose marginally due to the pick up in buying activity backed by rising billet prices. Sources reported a surge in enquiries. Participants booked material based on immediate needs, keeping in mind that sponge prices may rise further.
- Durgapur: Overall, the market witnessed an uptrend due to positive sentiments in north India which led sellers to increase their offers. Spot trades were moderate as price volatility increased which drove buyers into a wait-and-watch mode. Prices increased by INR 200/t d-o-d.
- Ramgarh: Prices rose initially due to the increase in prices in north India but did not sustain throughout the day. Spot trades were limited as buyers were cautious about bookings and prices increased marginally by INR 150/t d-o-d.
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 for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative
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