Prices of sponge iron in India fluctuated today. In some key locations, they were up by INR 50-100/tonne (t) as suppliers quoted higher offers. However, prices in Rourkela, Raigarh, and Bellary fell by INR 50/t. Due to rising prices in the Punjab market, producers were forced to raise their offers in some markets. However, only a few transactions were concluded. Market participants were less active today than due to higher offers.
About 10,750 t of sponge iron transactions were recorded today in India as against 17,200 t on 3 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.
- Raipur: The market remained sluggish with no major trade heard. Price levels remained unchanged compared to the last trading day.
- Bellary: Weak demand in sponge iron was seen amid the upcoming festival of Holi. Buyers were less active in booking material and hence held back their bids.
- Durgapur: Prices were almost stable in this region with moderate trades happening throughout the day.
- Ramgarh: The market was slow and has lost momentum. Market participants are waiting for the market to stabilise.
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
Leave a Reply