India: Sponge iron prices fall on weak buying activity - 23 Sep

Indian sponge iron prices fell today, declining in the range of INR 50-500/t d-o-d in major markets. Prices fell as a result of weak demand in the semi-finished and finished steel markets. Need-based buying resulted in limited market activity.

PDRI prices were assessed at INR 29,500-30,650/t and CDRI prices at INR 30,600-36,000/t.

About 10,210 t of sponge iron transactions were recorded on Saturday compared to 12,090 t on 22 September.

Lack of spot buying activity coupled with fluctuating steel prices contributed to the decline in sponge iron prices. Market participants are waiting for prices to stabilise, sources said.

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