- Prices rise by INR 50-400/t d-o-d
- Buyers do need-based procurement
Indian sponge iron prices increased by INR 50-400/tonne (t) d-o-d across key locations today.
PDRI prices were assessed at INR 21,400-26,000/t at the close of trading, while CDRI tags stood at INR 24,200-29,000/t.
The market exhibited an overall uptrend today, driven by positive sentiment and initial buying momentum in the first half of the trading session. However, as the day progressed, the pace of upward movement moderated slightly in the second half.
Despite the slight slowdown, there was a continued presence of enquiries in the market, indicating sustained interest from buyers.
Transactions for approximately 3,700 t of sponge iron were recorded on today. The overall transaction volume was recorded at a low-to-moderate level. Though buying activity was observed, it was largely confined to need-based procurement rather than aggressive stocking, suggesting that buyers are closely monitoring the market before committing to larger volumes.
Durgapur market overview
Sponge iron producers in Durgapur are operating steadily at 70-80% capacity. Selling pressure eased by the third week due to improved domestic demand. Prices have increased by INR 400-500/t over the past week.
Chennai market overview
Chennai’s sponge iron prices are firming up due to a shortage of pellets and limited local supply. Restricted availability from Bellary and delayed deliveries have added to supply challenges. Local manufacturers are sourcing from within Chennai, driving up demand and sustaining high prices.
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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