India: Sponge iron prices rally on rising steel prices - 17 Feb

Sponge iron prices in India continued to rally on account of a surge in steel prices in the northern region, especially Punjab. Prices rose by INR 100-400/t in key locations. Producers kept prices on the higher side today. Although prices trended higher, demand continued to remain moderate, SteelMint notes.

About 27,500 t of sponge iron transactions were recorded today in India as against 13,760 t on 16 February.

Snapshots of key markets

• Rourkela: A significant improvement in spot trade was seen today compared to yesterday. Several deals were concluded. Purchase enquiries increased amidst rising steel prices in the Punjab market, which nudged producers to float offers at higher levels.
  
  
• Raipur: Bulk buying was observed as buying interest improved. Decent trade activities were seen today compared to limited bookings witnessed over the past few days as buyers showed initiative to book orders.
  
  
• Bellary: The market saw moderate buying interest in the sponge iron segment even as demand at higher offers was limited.
  
  
• Durgapur: Spot traders were active today as the market trended higher post OMC's iron ore auction. Sellers raised offers with rising prices of semi-finished steel in north India.
  
  
• Ramgarh: The market saw subdued demand throughout the day, although the pace of trading did not flag. Buying interest, however, was low as offers were slightly on the higher side.
  
  

Rationale -

This index has 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