Sponge iron prices dropped in the range of INR 50-250/t in key locations today. Due to the ongoing downturn in steel prices in north India, specially Punjab, prices kept dropping as spot transactions remained low.
The result was a steady decline in both offers and bids due to selling pressure among suppliers. Fewer enquiries were made as price adjustments triggered caution among market participants. According to sources, erratic price changes have impacted spot trade volumes.
About 5,810 t of sponge iron transactions were recorded today in India as against 12,100 t on 10 March.
Snapshots of key markets
- Rourkela: Prices trended down on lower bids followed by volatile prices in north India. Buyers were cautious and weak spot trading was observed at lower offers. Thus, prices continued to soften.
- Raipur: The market remained sluggish, with no significant trades recorded. Prices fell further compared with the previous trading day.
- Bellary: Today’s buying activity in sponge iron dropped significantly due to the recent decline in semi-finished steel prices. Buyers are waiting for the market to stabilise.
- Durgapur: The market fell as a result of negative sentiments in the northern region. Sellers reduced offers today, with moderate trades reported.
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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