India: Sponge iron prices drop by INR 100-300/t d-o-d amid limited buying - 25 Nov

• Weak demand weighs on sponge iron prices
  
  
• Buyers remain cautious despite lower offers
  
  

India's sponge iron market witnessed a decline of INR 100-300/tonne (t) d-o-d, driven by persistently weak buying activities.

Prices were under pressure today due to subdued demand. However, despite lower offers, market participants adopted a cautious approach, as the finished steel segment saw muted sentiments.

South African RB2 coal prices remained stable d-o-d today. Non-coking (5500 NAR) coal settled at INR 9,500/t ($112/t) exw-Gangavaram.

PDRI prices stood at INR 23,800-26,400/t at the close of trading today, while CDRI offers were assessed at INR 26,200-31,200/t.

Deals of about 5,700 t of sponge iron were observed today, compared to 6,950 t recorded on 22 November.

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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T1 - Trade, T2 - Offer/Bid/Indicative