India: Sponge iron prices drop on limited buying - 28 Aug

Indian sponge iron prices dropped by INR 50-400/t today in all major locations. Sponge iron prices declined due to decrease in prices of semi-finished and finished steel owing to the limited demand in the market today.

PDRI market prices closed at a range of INR 23,500-26,500/t and CDRI prices at INR 26,000-29,800/t.

South African RB2 prices remained stable. Non-coking RB2 (5500 NAR) exw Gangavaram stood at INR 9,600/t ($114/t).

Market showed limited demand today, reflected in the calculation of daily spot trade volumes as buyers anticipating further downward movement in prices.

Only 6,200 tonnes (t) of sponge iron transactions were recorded in the country on Wednesday compared to 8,150 t on 27 August.

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