India: Sponge iron prices drop by INR 300-800/t on weak market sentiments - 22 Oct

Sponge iron prices in India decreased by INR 300-800/tonne (t) d-o-d today across various regions due to weak market sentiments.

Demand remained modest on Tuesday, impacted by sluggish movements in the semi-finished and finished steel segments, which led to further reductions in offers.

South African RB2 prices remained stable at INR 9,500/t exw-Gangavaram.

PDRI prices closed within the range of INR 25,100-27,100/t, while CDRI prices were assessed at INR 27,200-33,000/t.

Transaction volumes improved, with buyers having waited for a long time for prices to fall to the above ranges. Trades of approximately 15,000 t of sponge iron were recorded, up significantly from 4,050 t on 21 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%.

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T1 - Trade, T2 - Offer/Bid/Indicative