India: Sponge iron prices drop on weak spot demand - 3 Jul

• Limited spot transactions reported today
  
  
• Imported coal prices remain stable
  
  

Indian sponge iron prices dropped by INR 50-300/t in almost all major locations today. However, sponge PDRI prices in Durgapur and Ramgarh rose slightly by INR 100-200/t.

Sponge iron prices fell due to the downtrend in the semi-finished and finished long steel segments which led to weak demand observed throughout the day.

PDRI prices closed at INR 25,000-27,200/t while CDRI was assessed at INR 26,750-31,200/t.

South African RB2 (5500 NAR) coal prices remained stable today at at INR 10,100/t ($121/t) ex-Gangavaram.

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

Only 7,360 tonnes (t) of sponge iron transactions were recorded in the country compared to 28,610 t on 2 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