Sponge iron prices in India have been on the rise since the last few days. Today, prices increased by INR 50-350/t in key locations on the back of active demand and spot market optimism amid higher offers quoted by suppliers.
Producers were able to keep prices on the higher side due to a flurry of deals taking place, which were partly driven by the rise in billet prices by INR 50-250/t. Positive market trends led to buyers taking position which, in turn, resulted in increase in trade volumes.
About 34,410 t of transactions in sponge iron were recorded today in India as against 27.900 t on 27 February.
Snapshots of key markets
- Rourkela: The uptick in prices can be attributed to active demand and higher offers from suppliers. A rise in steel prices in the northern region, particularly in Punjab, resulted in sponge iron demand recovery. This led buyers to take positions in the market, which ultimately resulted in an increase in trade volumes.
- Raipur: Bulk buying was observed today at higher prices. The market showed an uptrend and prices of semi-finished steel improved. Offers by sellers were on the higher side.
- Bellary: Sponge iron buying activity surged today amid increased demand for semi-finished and finished steel. Sources informed that prices will remain strong in the coming days.
- Durgapur: Offers remained stable today with active trades being reported. Sellers are anticipating prices to rise further.
- Ramgarh: Active trading activities were observed after a long gap.
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
T1 – Trade, T2 – Offer/Bid/Indicative
Leave a Reply