India: Sponge prices continue to drop on weak buying activity - 23 May

Sponge iron prices in India declined by INR 100-500/tonne (t) in some major markets due to limited trading, with buyers engaging only in need-based procurement. Spot purchasing activity continued to remain low today resulting in prices decreasing in all key regions.

Uncertain price movement also led to the decline in trade volumes. Market participants are keenly monitoring price movements as they wait for prices to stabilise.

About 10,670 tonnes (t) of sponge iron transactions were recorded today in India as against 17,530 t on 22 May.

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