India: Sponge iron prices rise further across key markets - 16 Feb

Daily sponge iron prices increased by INR 400-700/t in major locations of the country due to improved buying interest, which resulted in improved trading activity throughout the day and led to a slight increase in demand for semi-finished steel products. Furthermore, following a significant increase in prices in Punjab, north India, suppliers were pushed to maintain higher offers.

About 13,760 t of sponge iron transactions were recorded today in India as against 17,500 t on 15 February.

Snapshots of key markets

• Rourkela: Market participants booked material as per requirements. Several players in the market adopted a wait-and-watch approach, which resulted in limited spot trades.
  
  
• Raipur: Buying activities in the market remained moderate today at higher offers. Buyers were hesitant to book material at higher offers.
  
  
• Bellary: The continuous rise in steel prices has driven up sponge iron prices and, in turn, has generated active demand thereby boosted trade volumes.
  
  
• Durgapur: The market went higher on account of rising prices in the northern region and the active response seen in the ongoing OMC iron ore auctions.
  
  

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