Indian sponge iron prices rose by INR 50-300/t in key locations today on account of higher offers floated by suppliers. Buying activity in the spot market has increased significantly over the last couple of days. However, limited deals were concluded today.
Due to healthy purchase enquiries and rising prices in the Punjab market, producers raised their offers today. Market participants were less active compared to yesterday because of higher offers.
About 13,300 t of sponge iron transactions were recorded today in India as against 26,200 t on 21 March.
Snapshots of key markets
- Rourkela: Sponge iron prices rose due to optimism in the market. Producers kept prices strong as several deals took place triggering the rise in prices, sources informed. As a result, spot trades remained active throughout the day leading to a rise in prices.
- Raipur: Sponge Iron prices showed an upward trend, although trade remained moderate. Material was booked at marginally higher offers. Markets in north India showed fluctuating trends, although sellers refused to reduce offers much.
- Bellary: Buying activity remained muted today with no major offers in the market amid festivities.
- Durgapur: Prices rose initially, but fell later in the day because of decline in sentiments in north India which weighed on spot trade.
- Ramgarh: There was strong demand for semi-finished steel in central and eastern India, which kept prices firm. However, spot trade was moderate today.
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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