India: Sponge iron prices fall further on limited buying interest - 6 May

Sponge iron prices fell by INR 50-400/t in key locations across India due to a lack of buying enquiries in the spot market. This led sponge suppliers in various regions to lower offers.

The trade activity stayed below average as market participants lacked the confidence about the price movement. Spot trading, hence, decreased by 59% d-o-d. Due to low interest among buyers, bids remained on the lower side.

In addition, semi-finished steel product prices moved down today amid weak spot demand. Billet prices dropped by INR 100-500/t across regions. This also affected sponge iron buying.

A total of 5,905 t of transactions were recorded today as against 14,500 t on 5 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