India: Sponge iron prices continue to rise further as trade gains momentum 13 Apr

Sponge iron prices in India increased by INR 50-300/t in key locations amid active spot trading seen today. Buying interest remained buoyant throughout the day. Spot trades rose a significant 31% compared to yesterday as market participants quickly took positions in anticipation of further rise in prices.

A total of 26,900 tonnes (t) of transactions were recorded as against 20,470 t on 12 April.

Reasons behind rise in prices

• Active demand: Bulk buying was seen at current price levels. Trade activities improved markedly as limited bookings had been seen over the past few days.
  
  
• High billet prices: Sponge iron prices rose today supported by a positive trend in the semi-finished and finished steel markets. Billet prices across regions rose by INR 100-300/t.
  
  

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