India: Sponge iron prices drop on weak spot demand - 10 May

• Market witnesses limited transactions
  
  
• South African RB2 prices remain stable
  
  

Indian sponge iron prices dropped by INR 50-600/t today in major locations. Sponge iron prices fell due to the downtrend in the semi-finished and finished long steel segments which led to weak demand throughout the day.

PDRI market prices closed at a range of INR 28,500-29,500/t and CDRI prices, at INR 29,750-35,500/t.

South African RB2 prices remained stable today. Non-coking RB2 (5500 NAR) exw Gangavaram stood at INR 9,900/t ($118/t).

Owing to weak market sentiments, very limited trading activity was reported today.

Only 7,000 tonnes (t) of sponge iron transactions were recorded in the country on Friday compared to 6,110 t on 8 May.

Spot buying uncertainties and fluctuating steel prices led to a reduction in sponge iron prices.

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