Sponge iron prices in India witnessed mixed trends today, falling by INR 50-200/t in some key locations, whereas prices in Ramgarh and Raigarh showed a marginal increase of INR 50-200/t. Spot trading remained moderate throughout the day across regions. Market participants are cautious about price movements and hence are trying to avoid bulk bookings.
About 14,500 t of sponge iron transactions were recorded today in India as against 20,700 t on 1 March.
Snapshots of key markets
- Rourkela: Prices remained stable today. However, trades were still less than average, resulting in limited enquiries. Market participants were low on confidence about booking material due to volatile price movements. This limited spot trading, with buyers engaging in need-based bookings
- Raipur: Spot trades remained limited today, as buyers have booked sufficient material over the past couple of days and hence held back their bids. Also, price corrections in the northen region was one of the reasons behind fewer enquiries.
- Bellary: The market slowed down today with limited spot trades. Buyers are resisting higher offers and thus held back their bids. They have booked sufficient quantity in the past few days which ultimately led to fewer enquiries.
- Durgapur: Today’s spot trades were moderate, and there were fewer buying enquiries, which was followed by lower steel prices in the northern region.
- Ramgarh: Average transactions were reported in the area despite price fluctuations. Market players are wary of prices amid approaching festival (Holi).
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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