India: Sponge iron prices rally on increased buying - 28 Aug

India's sponge iron market has witnessed a significant price rally, with hikes ranging between INR 100-1,100/t across primary locations. This surge has been attributed to a robust momentum in spot trading coupled with heightened buying interest.

Interestingly enough, transaction volumes soared to 35,000 tonnes (t) on Monday compared to 6,900 t recorded on 26 August.

According to sources familiar with the situation, the price increase can also be ascribed to the strong performance of the semi-finished and finished steel markets. Furthermore, billet prices increased by INR 400-1,000/t across key areas.

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