India: Sponge iron prices drop on weak spot demand - 16 Jul

• Downtrend in semi-finished, finished steel
  
  
• Market sees 9,650 t of sponge iron transactions
  
  

Indian sponge iron prices dropped by INR 50-300/t in almost all major locations today. However, sponge PDRI and CDRI prices in Ramgarh rose slightly by INR 50/t and 100/t, respectively.

Sponge iron prices declined due to a downtrend in the semi-finished and finished steel segments, resulting in low demand and limited trading throughout the day.

PDRI prices closed at INR 24,600-27,200/t while CDRI was assessed at INR 26,700-30,500/t.

South African RB2 (5500 NAR) coal prices remained stable today at INR 9,800/t ($117/t) ex-Gangavaram.

Only 9,650 tonnes (t) of sponge iron transactions were recorded in the country compared to 11,000 t on 15 July.

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