- Prices stable-to-slightly weak across key markets
- Trade volumes recover despite cautious buying
The Indian sponge iron market exhibited a mixed trend today, with prices remaining stable to dropping marginally across key production regions. Sponge iron prices in Raipur, Durgapur, and Ramgarh declined by INR 50-150/t d-o-d, reflecting cautious buying sentiment. Market activity improved slightly compared to the previous trading session; however, procurement continued to be largely need-based, keeping overall trading at low-to-moderate levels.
Despite the marginal improvement in enquiries, trading activity remained average, as buyers showed limited willingness to procure at higher price levels.
Raw material
On the raw material front, Raipur pellet prices were around INR 9,400/t due to maintenance shutdowns at major pellet plants in the central region and ongoing export orders tightening supply. Higher pellet prices have increased production costs for sponge iron manufacturers.
In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis remained stable at around $105/t, and domestic non-coking coal prices at Visakhapatnam port also remained stable d-o-d at approximately INR 10,350/t.
Trade volume
Buyers continued to procure only need-based volumes, with no significant bulk deals reported. BigMint recorded sponge iron trade volume of around 14,300 t, nearly 8,900 t higher than the previous trading session.
Rationale
Prices have 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 here for detailed methodology
Leave a Reply