India: Sponge iron prices edge higher on rising steel prices, active demand - 15 Apr

• Sponge iron prices rally on rising steel prices
  
  
• Billet prices rise sharply by INR 1,600-2,000/t
  
  
• Bulk bookings seen across key markets
  
  

India's sponge iron market witnessed a sharp rise in prices today ranging from INR 1,200 to INR 2,200/t in almost all principal locations. This can be attributed to rising steel prices followed by active spot trading coupled with buying interest.

PDRI market prices closed at a range of INR 28,500-30,600/t and CDRI prices at INR 29,500-34,700/t.

South African RB2 coal prices increased by $5/t today. Non-coking RB2 (5500 NAR) coal stand at INR 9,850/t ($118/t) exw Gangavaram.

Bulk bookings were seen across regions today, which led to a significant rise in daily spot trade volumes d-o-d.

About 32,620 tonnes (t) of sponge iron transactions were recorded in the country on Monday compared to 8,350 t on 12 April.

According to sources, active bookings coming from semi-finished and finished steel prices also led to a rise in sponge iron prices. Billet prices in key areas increased by INR 1,600-2,000/t today.

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