India: Sponge iron prices slump amid limited buying activity - 27 Nov

Sponge iron prices in India witnessed a substantial drop, plummeting by INR 200-700/t in major markets. This decline is attributed to a negative market sentiment influenced by a significant downturn in the semi-finished steel segment. Despite a slight improvement in buying activity, especially at lower price points in various regions, caution among buyers, continuous price decreases, and the festive holiday season have collectively dampened market dynamics.

PDRI market closed at INR 25,400-28,200/t, and the CDRI market closed at INR 27,800-32,300/t.

Daily transactions of sponge iron increased to 8,610 t, up from 4,340 t on 25 November.

Cautious perspective from buyer's end, along with the continuous decline in prices and festive holiday, appears to have influenced buying decisions, resulting in muted market activity d-o-d.

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%.

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