India's sponge iron prices drop on soft steel demand - 29 May

Sponge iron prices in the key markets of India dropped by INR 100-350/tonne (t) due to soft steel demand. In fact, an ongoing downturn in steel prices, particularly in Punjab also dragged prices down. As a result, moderate spot transactions have occurred, causing a decline in both offers and bids and mounting pressure on suppliers.

With limited enquiries have been made, market participants booked material as per need and at lower offers.

However, sponge prices in the southern region saw a marginal uptick of INR 50-100/t as sellers refused to lower their offers. About 14,520 tonnes (t) of sponge iron transactions were recorded today in India as against 5,600 t on 27 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