India: Sponge iron prices inch up on rising steel prices - 21 Oct

Indian sponge iron prices inched up today by INR 50-200/t in some key locations due to a slight rise in steel prices in the first half of the trading session. However, demand remained very weak as most of the market participants were inactive specifically in the eastern region due to festivity (Navratri and Dussehra).

Sponge iron prices only in Mandi Gobindgarh inched down by INR 100/t.

PDRI market prices closed at a range of INR 26,700-28,950/t and CDRI prices, at INR 29,150-33,800/t.

Only 950 tonnes (t) of sponge iron transactions were recorded in the country on Saturday compared to 7,900 t on 20 October.

Sources informed SteelMint that since last one week, prices of sponge have dropped owing to decreasing steel prices and weak finished steel sales.

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