India: Sponge iron prices drop amid festive season - 11 Oct

Indian sponge iron prices dropped by INR 100-500/tonne (t) in almost all major locations today. PDRI prices closed at INR 27,650-28,200/t while CDRI was assessed at INR 28,650-33,500/t. South African RB2 (5500 NAR) coal prices remained stable on Friday at INR 9,500/t ex-Gangavaram.

Sponge iron prices declined due to a downtrend in semi-finished and finished steel, driven by low demand as buyers remained hesitant amid the festive season.

However, participants in the central region showed interest and booked materials in anticipation of a price increase next week. A total of 6,700 t of sponge iron transactions were recorded across the country, compared to 5,100 t on 9 October.

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