India: Sponge iron prices rises rally on increased buying - 9 Nov

India's sponge iron market witnessed a significant price rise, ranging between INR 50-300/tonne (t) across primary locations. This surge has been attributed to a robust momentum in spot trading coupled with heightened buying interest.

The central region (Raipur) recorded over 14,000 tonnes of sponge iron transactions, followed by Rourkela which recorded over 10,000 tonnes of transactions today. Active bookings were witnessed from the southern region as well.

Interestingly enough, transaction volumes soared to 42,025 t on Thursday compared to 9,650 t recorded on 8 November.

PDRI market prices closed in a range of INR 25,800-28,300/t and CDRI prices, at INR 28,500-33,300/t.

According to sources familiar with the situation, the price increase can also be ascribed to the strong performance of the semi-finished and finished steel markets. Furthermore, billet prices increased by INR 100-500/t across key areas.

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%.

Click for detailed methodology

T1 - Trade, T2 - Offer/Bid/Indicative