India: Sponge iron prices continue to drop amid moderate buying - 4 Jul

Sponge iron prices in India continued to drop. These fell by INR 100-300/tonne (t) in some major markets on moderate trading on 4 July, 2023. Buyers are engaging only in need-based procurement. However, sponge iron prices only in Rourkela edged up by INR 50/t.

Spot purchasing activity continued to remain moderate, driving prices down in key regions. It may be noted here that prices are decreasing for sometime now. Prices are falling because of weak finished steel sales. As a result, limited procurement in the market was noticed in recent times. Sources informed SteelMint that prices would keep falling in the near term.

About 16,950 tonnes (t) of sponge iron transactions were recorded today in the country as against 15,150 t on 3 July.

Market participants are keenly monitoring price movements as they wait for prices to stabilise.

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%.

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T1 - Trade, T2 - Offer/Bid/Indicative