- Spot offers rise on positive sentiments
- Slight recovery in finished steel supports offers
Sponge iron spot prices fell by INR 100-200/tonne across major Indian markets, with Chennai witnessing the sharpest correction. In contrast, Durgapur saw a price rise of INR 100/tonne, supported by localized demand. Prices declined in the first half of the day amid weak sentiment, but a shift emerged later as speculative buying picked up, prompting marginal recovery.
An estimated 16,000 tonnes were booked, marking a noticeable increase in trade volume compared to previous sessions. This reflects growing buyer interest, primarily driven by expectations of near-term price increases rather than immediate consumption needs. Finished steel also experienced moderate buying, adding to market optimism.
While the overall market remains cautious, today’s activity suggests that buyers are re-engaging, potentially anticipating a trend reversal. If speculative sentiment continues to strengthen, sponge iron prices could see upward pressure in the short 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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