India: Sponge iron prices rally on active trade, buyer interest - 28 Jul

India's sponge iron prices moved up in the range of INR 300-700/t in key locations on 28 July, 2023 driven by robust spot trading and an active buying interest.

Buyers entered the market expecting prices would go up even further. This led to a substantial increase in spot trade as compared to the previous day.

Interestingly enough, transaction volumes soared to 23,950 tonnes (t) today compared to 12,850 t recorded on 27 July.

Industry insiders attribute the price escalation to the robust performance of semi-finished and finished steel markets. Adding to the upward pressure on sponge iron prices, billet prices also experienced a sharp rise across regions, going up by INR 200-500/t. The overall market sentiment remains bullish.

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