India: Sponge iron prices decline by INR 50-350/t d-o-d amid weak buying - 6 Jan

• Slow finished demand pressures sponge tags
  
  
• Lower offers fail to perk up buying interest
  
  

India's sponge iron offers declined by INR 50-350/tonne (t) d-o-d across various locations, as weak market sentiments led to corrections in spot prices.

In an attempt to attract buying interest, sellers reduced spot offers; however, inquiries and buying activity remained limited. Slow demand in the finished steel segment further dampened interest, keeping sponge iron demand low and resulting in subdued buying d-o-d.

PDRI prices stood at INR 23,200-26,200/t at the close of trading today, while CDRI offers were assessed at INR 25,850-30,800/t.

Deals for about 8,400 t of sponge iron were recorded today compared to 9,650 t on 3 January.

Rationale

Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.

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