India: Sponge iron prices drop on weak spot demand - 21 Feb
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Indian sponge iron prices edged down today by INR 50-250/t 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 24,650-27,400/t and CDRI prices, at INR 26,050-31,000/t.
As a result, buyers came forward for only need-based bookings. Owing to weak market sentiments, limited trading activity were reported d-o-d.
Only 6,000 tonnes (t) of sponge iron transactions were recorded in the country on Wednesday compared to 22,300 t on 20 February.
Spot buying uncertainty, combined with fluctuating steel prices, contributed to a reduction in sponge iron prices, leaving market participants hopeful for price stability.
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
