India: Sponge iron prices rally on increased buying activity - 24 Aug

India’s sponge iron market has witnessed a significant price rally, with hikes ranging between INR 200-800/t across primary locations. This surge has been attributed to a robust momentum in spot trading paired with heightened buying interest.

Sources mention increased demand for sponge iron pan India as one of the key reasons for rising coal prices, and premium bookings in coal from ports have happened.

About 16,100 tonnes (t) of sponge iron transactions were recorded across the country compared to 13,150 t on 23 August.

According to people acquainted with the situations, the price increase can also be attributed to the robust performance of the semi-finished and finished steel markets. Furthermore, billet prices climbed by INR 400-1,000/t in the key locations.

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%.

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