India: Sponge iron prices decline even as trade volumes improve - 24 May

India's sponge iron market today witnessed a surge in buying activity. Prices continued to decline in the range of INR 50-500/t across key locations. However, this downward trend did not deter traders, as increased trading activity was observed, leading to a slight rise in finished steel trade and higher trade volumes d-o-d.

Market swings in north India played a significant role in stimulating enquiries and trading activity. Market participants anticipate a surge in demand in the upcoming days, which further boosted buying sentiment.

Transaction volumes surged to 18,740 t on 24 May compared 10,670 t recorded yesterday.

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