India: Sponge iron market weakens on declining steel prices - 1 Jul

• Market sees limited spot transactions
  
  

Sponge iron prices in almost all key domestic markets dropped in the range of INR 150-650/tonne (t) due to falling steel prices. However, sponge CDRI prices only in Mandi Gobindgarh edged up by INR 200/t.

PDRI market prices closed at a range of INR 24,900-27,100/t and CDRI prices, at INR 26,600-31,200/t.

South African RB2 prices remained stable today. Non-coking RB2 (5500 NAR) exw Gangavaram stood at INR 10,100/t ($121/t).

Limited spot transactions were seen today and that too on lower prices. This led to a decline in both offers and bids thereby exerting pressure on suppliers across regions. Furthermore, billet prices have also been reduced by INR 100-800/t.

About 8,800 t of sponge iron transactions were recorded in the country on Monday compared to 24,500 t on 28 June.

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 for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative