Sponge iron prices in India rose by INR 50-250/t in a few key locations today, while prices in Ramgarh witnessed a marginal drop of INR 50/t. Buying interest remained moderate throughout the day. However, spot trades rose significantly by 99% compared to Saturday because of the rebound in steel prices in the first half, which saw market participants taking positions.
About 19,470 t of sponge iron transactions were recorded today in India as against 9,800 t on 4 February.
Snapshots of key markets
- Rourkela: Prices rose marginally on firm buying interest following a slight improvement in demand since last weekend. In addition, a significant rise in offers in Punjab, north India, influenced suppliers to keep offers higher.
- Raipur: Moderate trading was observed at higher offers compared with Saturday. Limited buying activity was witnessed at higher prices as buyers are anticipating prices to soften further. There was marginal increase in prices amid overall low acceptance.
- Bellary: Today’s spot buying activity in sponge iron surged as a result of an uptick in offers which were supported by the rising trend in the semi-finished steel market.
- Durgapur: Spot trades were on the lower side today, although suppliers raised prices. However, buyers are still waiting for the market to stabilise.
- Ramgarh: Market participants informed that demand remained limited today amid the volatility in steel prices, especially in the northen region.
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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