India: Sponge iron prices rebound amid rise in spot trades - 12 Apr

Sponge iron prices in India rose by INR 50-350/tonne (t) in key markets as demand for the material increased, making the spot market look positive. The market saw increased trading activity despite the higher offers quoted by suppliers.

A total of 20,470 t of transactions were recorded today as against 13,150 t on 11 April.

Reasons behind rise in prices

• Higher offers: Due to the flurry of transactions, producers were encouraged to keep their offers on the higher side. Buyers, on the other hand, apprehending that prices may rise further, took positions. This, in turn, increased trade volumes.
  
  
• Increasing billet prices: Prices for semi-finished steel products rose dramatically as spot demand picked up. There was a strong demand for sponge iron because the prices of billets increased by INR 100-400/t across all regions.
  
  

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