Sponge iron prices in India rose in the range of INR 100-400/tonne (t) in key locations on account of higher offers floated by the suppliers. Buying activity in the spot market increased significantly. A number of transactions were concluded today. Due to healthy purchase enquiries and rising steel prices in the Punjab market, producers were forced to raise their offers today.
Sponge iron trades totalling over 22,000 t were noted today in India compared to 10,750 t on 4 March.
Snapshots of key markets
- Rourkela: There was lack of buying interest and spot trade volumes remained low. Buyers had booked sufficient orders over the past couple of days and hence decided to hold back their bids today.
- Raipur: Purchasing activities improved today, with most buyers expecting prices to rise slightly due to lesser availability of transportation and labour due to the Holi festival.
- Bellary: Healthy bookings were recorded throughout the day as semi-finished steel price remained supported leading to increase in buying activity in sponge iron. According to sources, shortage of scrap in the market pushed buyers to turn their focus towards sponge iron.
- Durgapur: Prices went up due to jump in steel prices in the northern region markets which made sellers raise their offers in this region. Trades were moderate today. Also, the upcoming Holi festival will have an an impact on the material movement.
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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