Producers kept prices strong as several deals took place triggering a rise in prices today. This happened following an improved buying on account of surge in steel prices in the northern region, especially Punjab. These crucial factors led to an improved trading activity throughout the day and led to a “slight rise” in demand for semi-finished steel products. In key locations, daily domestic sponge iron prices rose by INR 50-400/t.
About 21,490 t of sponge iron transactions were recorded today in India as against 12,650 t on 20 February.
Snapshots of key markets
- Rourkela: Suppliers were pushed to maintain offers on the higher side following a significant increase in prices in Punjab, north India. Considering these factors, buyers started to take positions. This, in turn, led to gains in spot trade volumes.
- Raipur: Moderate trading activity at higher prices reported today. Market showed slight improvement. Prices of semi-finished steel also showed an improvement. Prices offered by sellers were on the higher side. It led to a moderate booking on offered prices.
- Bellary: Today’s buying activity in sponge iron was spurred by higher semi-finished steel prices. This ultimately resulted in an increase in spot trading volume d-o-d.
- Durgapur: In terms of prices, the market was fairly constant. Sellers maintained their offers, which eventually resulted in modest number of trades being reported.
- Ramgarh: Due to the overall slow demand for semi-finished steel, trades in sponge iron were moderate, followed by suppliers’ higher offers.
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
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