India: Sponge iron prices fall on weak spot demand - 20 Jun

Prices of sponge iron decreased by INR 50-200/tonne (t) in major markets across the country. Amid the continuous decline in spot demand for semi-finished steel products, sponge prices dropped significantly. However, prices in Bellary, Karnataka, witnessed a marginal uptick of INR 50/t amid shortage of material in the region.

About 8,900 tonnes (t) of sponge iron transactions were recorded today in India as against 12,000 t on 19 June.

Notably, low demand for sponge iron resulted from a substantial drop in billet prices. Little buying interest was seen in the market today amid festivity (Rath Yatra) followed by low bids reported.

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