India: Sponge iron prices drop, trade remains moderate - 23 May

• Sponge iron buying enquiries increase
  
  
• South African RB2 prices remain stable
  
  

Sponge iron prices in India witnessed a decrease of INR 50-450/t in all major regions, driven by a downward trend in the semi-finished steel segment in the first half of the trading session today.

However, in the second half of the trading session, steel prices edged up resulting in an increase in buying enquiries for sponge iron.

PDRI market prices closed at a range of INR 27,800-29,200/t and CDRI prices, at INR 29,000-35,000/t.

South African RB2 prices remained stable today. Non-coking RB2 (5500 NAR) Exw Gangavaram stand at INR 9,950/t ($119/t).

D-o-d, spot trade volumes up by 26%, with trading activity remaining moderate across regions.

About 12,450 tonnes (t) of sponge iron transactions were recorded in the country on Thursday compared to 9,900 t on 22 May.

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