India: Sponge iron prices drop on falling steel prices - 10 Jun

• South African RB2 prices remain stable
  
  
• Market sees moderate spot transactions
  
  

Sponge iron prices in all key domestic markets dropped in the range of INR 50-500/tonne (t) due to falling steel prices.

PDRI market prices closed at a range of INR 26,350-28,350/t and CDRI prices, at INR 28,800-34,500/t.

South African RB2 prices remained stable today. Non-coking RB2 (5500 NAR) exw Gangavaram stood at INR 10,200/t ($122/t).

Moderate spot transactions were seen today and that too on lower prices. This led to a decline in both offers and bids thereby exerting pressure on suppliers across regions. Furthermore, billet prices have also been reduced by INR 200-500/t.

About 12,900 tonnes (t) of sponge iron transactions were recorded in the country on Monday compared to 41,740 t on 7 June.

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