- Buyers delay purchases hoping for further fall in prices
- Production cuts in Raipur may offer some support to prices
Indian sponge iron prices edged down by 100-300/t today in key markets, while in some regions prices rose slightly by INR 50-100/tonne (t) d-o-d.
PDRI prices were assessed at INR 21,700-26,200/t at close of trading, while CDRI tags stood at INR 23,800-28,700/t.
The sponge iron market continued to witness a downward trend, primarily influenced by weakening sentiments in the semi-finished and finished steel segments. The bearish movement in the steel market has dampened buying enthusiasm, with most buyers adopting a wait-and-watch approach.
Anticipating a further correction in prices, procurement activity remained notably sluggish. Market participants reported that due to prevailing weak demand and oversupply conditions, material prices are expected to remain under pressure in the coming days. This cautious outlook has resulted in limited transactions and heightened uncertainty across the supply chain.
In the Raipur market, approximately 10 – 11 sponge iron mills have undertaken maintenance shutdowns, leading to an estimated production loss of around 3,000 t/per day. This temporary supply disruption is expected to lend some support to prices in the near term.
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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