India: Sponge iron prices fluctuate amid limited demand - 9 Dec

• Volatility leads to price hike in certain regions
  
  
• Downtrend in steel, low inquiries cause strain
  
  

Sponge iron prices in India showed mixed trends today amid limited demand. Certain regions recorded a rise of INR 50-100/tonne (t) d-o-d due to volatile and moderate market conditions. However, prices decreased by INR 50-150/t in the Durgapur, Ramgarh, and Bellary regions.

A downtrend in the steel market and a lack of inquiries caused market participants to stay cautious, which resulted in a decline in sponge iron prices.

PDRI prices were assessed at INR 23,400-26,300/t, while CDRI tags stood at INR 26,000-30,500/t.

Deals of 6,600 t of sponge iron were recorded as compared to 5,600 t on 6 December.

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%.

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T1 - Trade, T2 - Offer/Bid/Indicative