India: Sponge iron prices drop by up to INR 550/t on soft steel demand - 10 Apr

• Billet prices fall by INR 50-500/t
  
  
• Spot trade volumes increase d-o-d
  
  

Sponge iron prices in all key domestic markets dropped in the range of INR 50-550/tonne (t) on 10 April, 2024 due to soft steel demand.

PDRI market prices closed at a range of INR 26,750-28,700/t and CDRI prices, at INR 27,750-33,000/t.

South African RB2 prices remained stable today. Non-coking coal grade RB2 (5500 NAR) Exw Gangavaram stood at INR 9,400/t ($113/t).

Limited spot transactions were seen in general which led to a decline in both offers and bids. However, spot trade volumes were up on a d-o-d basis.

About 11,100 tonnes (t) of sponge iron transactions were recorded in the country on Wednesday compared to 5,400 t on 9 April.

A decline in billet prices by INR 50-500/t was also one of the reasons behind the drop in sponge iron prices. Market participants are cautious about the price movements and anticipating a further price correction this week.

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