India: Sponge iron prices rise INR 50-400/t d-o-d following decent buying - 3 Dec

• Higher offers deter buyers, limited trades seen
  
  
• Weak semis, finished steel curb sponge demand
  
  

India's sponge iron offers increased marginally by INR 50-400/tonne (t) d-o-d. This rise follows decent buying activity seen during yesterday's trading session. However, procurement remained comparatively slow today, as higher spot offers deterred immediate purchases.

Moreover, limited movements in the semi-finished and finished steel segments further impacted sponge iron demand, keeping overall buying subdued on a d-o-d basis.

PDRI prices stood at INR 23,100-26,200/t at the close of trading today, while CDRI offers were assessed at INR 25,750-30,200/t.

Deals of about 9,300 t of sponge iron were recorded today compared to 27,350 t on 2 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%.

Click here for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative