Sponge iron prices in India rose by INR 100-300/t in some key locations, whereas prices in Mandi Gobindgarh decreased by INR 100/t. Spot trading was moderate throughout the day. Market participants remained cautious about price movements and hence sought to avoid bulk bookings.
About 21,100 t of sponge iron transactions were recorded today in India as against 20,890 t on 23 March.
Snapshots of key markets
- Rourkela: Prices rose marginally 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. As a result, spot trading remained restricted.
- Raipur: Sponge iron prices remained unchanged today and limited deals were reported. Buyers booked material to meet immediate requirements, which is why spot trade volumes remained less than average.
- Bellary: Spot buying activity surged in response to improvement in demand following an improvement in steel prices in north India.
- Durgapur: Overall, the market witnessed an uptrend but buying remained moderate as buyers have already placed sufficient orders over the past couple of days.
- Ramgarh: Active buying was seen after a long gap. Buyers booked material throughout the day, which ultimately resulted in a rise in spot trade volumes.
Rationale –
This index has been derived based on transactions, offers, bids and an 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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