India: Sponge iron prices drop further by INR 50-550/t d-o-d amid modest buying - 24 Oct

India's sponge iron market today witnessed a further price drop of INR 50-550/t d-o-d amid modest buying. While prices remained under pressure due to tepid demand, participants exercised caution due to weaker sentiments in the finished steel segment.

However, after the second half of today's trading session, some regions saw a slight uptick in buying activity, driven by deals concluded from neighbouring markets, as well as opportunistic purchases due to favourable price levels.

South African RB2 coal prices remained stable today. Non-coking (5500 NAR) coal was priced at INR 9,500/t ($113/t) exw-Gangavaram.

PDRI prices stood at INR 24,700-26,900/t at the close of trading today, while CDRI offers were assessed at INR 27,200-32,600/t.

Deals of about 14,900 t of sponge iron were recorded today compared to 8,300 t on 23 October.

Rationale

Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered 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