Limited trade weighs on Indian sponge iron prices - 19 May

Sponge iron prices in India fell in the range of INR 50-350/tonne (t) in key locations today amid limited trade. Though transaction volumes increased compared to the last trading day, these were still lower than average levels. Market participants showed low buying interest, resulting in fewer trade activities.

Since customers had placed enough orders this week, they chose to place orders only when needed. Additionally, with falling steel prices in the northern region, majority of buyers have adopted a wait-and-watch approach.

About 9,110 t of sponge iron transactions were recorded today in the country as against 6,880 t seen on 18 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