India: Sponge iron prices show mixed trends amid modest buying - 16 Sep

Sponge iron prices displayed contrasting trends across India, with a drop of INR 50-300/tonne (t) d-o-d recorded in some regions due to weak demand and bearish market sentiments. However, in other areas, prices saw an increase of INR 100-200/t d-o-d.

Despite lower spot market offers, buyers remained cautious, adopting a "wait and watch" approach, as demand for finished steel was weak. Additionally, ongoing festive holidays further slowed procurement activities.

South African RB2 coal prices remained stable d-o-d today. Non-coking (5500 NAR) coal was priced at INR 9,400/t ($112/t) exw-Gangavaram.

Deals of about 8,950 t of sponge iron were recorded today, as compared to 8,500 t on 13 September.

Rationale

Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered 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