India: Sponge iron prices continue to fall on weak demand - 7 Apr

Sponge iron prices fell by INR 50-300/t in key locations of the country amid lack of buying enquiries due to weak sentiments in the spot market. This prompted suppliers in various regions to reduce offers.

A total of 16,620 t of transactions were recorded today as against 10,100 t on 6 April.

Reasons behind falling prices-

• Low spot trade: Market participants lacked trust in the direction of price change. As a result, spot trading was considerably low.
  
  
• Weak demand: Weak demand for sponge iron was due to the significant drop in billet prices. Today, there was little buying activity in sponge iron and bids were on the lower side.
  
  

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