India: Sponge iron prices fall on weak procurement- 18 May

Sponge iron prices in India fell by INR 50-450/tonne (t) in some key locations on account of limited trade as buyers were engaged only in need-based procurement to fulfil their immediate requirements. However, only in the southern region sponge iron prices witnessed a slight rise of INR 50/t as sellers refused to lower their offers. Spot buying interest was weak today, eventually leading to a decrease in prices in most regions.

Uncertain price movement was another key factor that contributed to dull trade volumes. Market participants are closely watching the movement of prices as they wait for prices to stabilise.

Notably, demand for sponge iron is largely driven by demand for steel and a slowdown in demand for steel impacts sponge demand.

About 6,880 tonnes (t) of sponge iron transactions were recorded today in India as against 10,050 t on 17 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