India: Sponge iron prices continue to fall on weak market sentiments - 21 Dec

Sponge iron prices in India dropped further today. Prices fell by INR 150-800/t in key locations due to weak sentiments in the spot market. This led to a reduction in offers from sponge suppliers in various regions of the country.

PDRI market prices closed at a range of INR 25,800-28,200/t and CDRI prices, at INR 27,800-32,300/t.

Only 3,850 tonnes (t) of sponge iron transactions were recorded in the country on Thursday compared to 5,000 t on 20 December.

The price drop was also influenced by a considerable reduction in steel prices in north India, which resulted in subdued spot purchases. SteelMint learnt from sources that only need-based enquiries were made because the majority of participants decided to remain on the sidelines.

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