India: Sponge iron prices rise INR 100-400/t despite muted trades - 4 Dec

• Buying interest remains subdued at higher offers
  
  
• Weak demand for finished steel keeps market wary
  
  

India's sponge iron offers increased by INR 100-400/tonne (t) d-o-d across various regions, driven by market volatility and prevailing trends in neighbouring markets.

However, despite the upward price movement, buying interest at higher offers remained limited, as the finished steel segment has not experienced much improvement. Slow demand in the finished steel segment limited sponge iron procurement, keeping market sentiment cautious.

PDRI prices stood at INR 23,200-26,200/t at the close of trading today, while CDRI offers were assessed at INR 26,000-30,400/t.

Deals of about 6,500 t of sponge iron were recorded today compared to 9,300 t on 3 December.

Rationale

Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.

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T1 - Trade, T2 - Offer/Bid/Indicative