India: Sponge iron prices continue to drop on weak buying activity - 25 Nov

Sponge iron prices in India declined by INR 50-300/tonne (t) in major markets due to limited trading. Spot purchasing activity continued to remain low today resulting in prices decreasing in some key regions. However, sponge iron prices only in the southern region witnessed a slight rise by INR 100-150/t.

PDRI and CDRI market prices closed at INR 26,000-28,500/t and INR 28,250-32,500/t, respectively.

Only 4,340 tonnes (t) of sponge iron transactions were recorded on Saturday, a significant drop from 15,100 t on 24 November.

Uncertain steel prices movement made participants cautious and this led to a decline in trade volumes. Market participants are keenly monitoring price movements and are waiting 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%.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative