India: Sponge iron prices drop on weak spot demand - 6 Aug

Indian sponge iron prices dropped by INR 50-300/tonne (t) in almost all major locations today.

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. However, trade volumes calculated for Raipur and Raigarh region has been improved.

PDRI prices closed at INR 23,300-26,500/t while CDRI was assessed at INR 25,750-29,800/t.

South African RB2 (5500 NAR) coal prices remained stable today at INR 9,800/t ($114/t) ex-Gangavaram.

Only 3,900 tonnes (t) of sponge iron transactions were recorded in the country today compared to 500 t on 5 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