India: Sponge iron prices rebound amid rise in steel prices - 5 Jul

Sponge iron prices in India increased in the range of INR 50-200/tonne (t) in some key markets amid rising steel prices on 5 July, 2023. It may be noted here that sponge iron prices rose after a spell of downtrend in recent times.

Despite higher offers from suppliers, the market experienced decent trading activity today. However, sponge prices in the eastern and northern regions witnessed a drop of INR 50-200/t as buyers were resisting higher offers.

About 20,750 tonnes (t) of sponge iron transactions were recorded in the country as against 16,950 t on 4 July.

Producers increased offers sensing a rise in demand for sponge iron. Sources informed SteelMint that demand increased because prices of semi-finished steel rose considerably. Meanwhile, billet prices rose in the range of INR 50-200/t across 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%.

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T1 - Trade, T2 - Offer/Bid/Indicative