- Buying spurred by need to avoid monsoon disruptions
- Sponge iron shortage witnessed in Raipur market
Indian sponge iron prices rose by INR 50-500/tonne (t) d-o-d.
PDRI prices were assessed at INR 21,600-26,200/t at close of trading, while CDRI tags stood at INR 23,900-28,800/t.
Today, the sponge iron market witnessed a positive response as buyers actively secured material through monsoon bookings, even at slightly raised offer levels. This uptick in procurement was driven by the need to ensure inventory before potential monsoon-related disruptions.
However, market sentiment remained mixed across the central and eastern regions, with some participants reporting tight material availability, while others noted sufficient supply. This regional disparity in supply dynamics added an element of uncertainty to the overall market mood.
Raipur market overview
Market participants report a shortage of quality sponge iron material (PDRI FeM 80% and DR-CLO FeM 81+), which has led to a sudden rise in spot offers. This comes despite continued downward momentum in related segments such as billets, rebar, and wire rods. Bookings for sponge iron have increased and are expected to further tighten in the near term due to constrained availability.
Durgapur market overview
Steady buying was observed in sponge and pellet segments towards June-end and early July. This was supported by active demand from the finished steel sector, boosting procurement. Buyers also advanced purchases anticipating logistical disruptions due to the monsoon’s onset. Pre-monsoon stocking further contributed to consistent market activity. As a result, prices remained stable despite mixed sentiment in broader steel markets.
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%.
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