India: Sponge iron prices rise on positive trends in semi-finished steel market - 15 Feb

Sponge iron prices in India increased today in line with improvements in the semi-finished steel market. Prices in key cities rose by INR 100-300/t due to increased demand and higher offers from suppliers. Due to a rush of transactions spurred in part by a jump in billet prices in the range of INR 100-400/t, producers were able to keep prices on the higher side, with market participants predicting further improvement in demand.

About 17,500 t of sponge iron transactions were recorded today in India as against 25,020 t on 14 February.

Snapshots of key markets

• Rourkela: Sponge prices rose on the rising trend in the semi-finished steel market today, although the pace of trading remained not that fast due to higher offers as buyers are anticipating more stability in the coming days.
  
  
• Raipur: Moderate trading was observed at increased offers as compared to yesterday the offers quoted in the market were on the higher side. Limited buying activity was witnessed at higher prices. Sponge Iron prices increased by INR 100/t today.
  
  
• Bellary:The market remains volatile which has spurred buying activity resulting in a rise in trade volumes. Positive trends in the finished and semi-finished steel markets encouraged buying activity.
  
  
• Durgapur:Sellers raised offers as the market continued to remain positive today. Prices witnessed a rise of 300/t d-o-d on moderate demand.
  
  
• Ramgarh:Slow demand was observed in the entire semi-finished steel segment. Trades were moderate due to higher offer prices.
  
  

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