India: Sponge iron offers increase amid rise in billet prices - 17 Apr

Sponge iron prices in India climbed up by INR 50-500/tonne (t) in key markets, giving a positive turn to spot transactions. Despite higher offers from suppliers, the market experienced increased trading activity.

A total of 21,710 t of transactions were recorded today as against 7,370 t on 15 April.

Reasons behind rise in prices

• Increasing billet prices: Producers increased offers sensing a rise in demand for sponge iron today. Demand for sponge rose because prices of semi-finished steel increased considerably amid rise in spot demand for the latter. Billet prices jumped by INR 100-400/t across regions.
  
  

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