India: Sponge iron prices fall on slow buying activity - 31 Jan

Indian sponge iron prices declined in the range of INR 50-550/t across major locations. Prices continued to fall in the northern and eastern regions of the country as spot trading activity remained limited. Suppliers faced selling pressure resulting in the continuous reduction in both offers and bids. Uncertain price swings, according to sources, impacted spot trade volumes.

About 12,500 t of sponge iron deals were recorded today in India as against 22,080 t on 30 January.

Snapshots of key markets

• Rourkela: Prices fell due to reduced offers, followed by unpredictable prices in north India. Buyers were cautious and purchased material based on immediate requirement and lower offers. As a result, prices continued to drop.
  
  
• Raipur: The market was slow and has lost momentum. Before floating offers at lower prices, both buyers and sellers are waiting for the market to stabilise.
  
  
• Bellary: Slow demand and few inquiries impacted on sponge iron prices resulting in a decrease in overall sales. Slower movement of semi-finished and finished steel across the region also weighed on prices.
  
  
• Durgapur: Prices edged down today as buyers showed no interest in bulk bookings. Sellers had to reduce offers as buying remained limited and as prices fell in other regions of the country. Today, prices fell INR 550/t d-o-d in Durgapur.
  
  
• Ramgarh: Due to low demand, there was limited booking and prices fell by INR 150-250/t. In a gloomy market, sellers struggled to keep bids at higher levels. Participants expect the market to gain momentum after the General Budget.
  
  

Rationale -

This index has 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