- Overall sentiment stays weak amid festive holiday
- Market participants adopt wait-and-watch stance
The Indian sponge iron market stayed largely stable today, except in the central region (Raipur and Raigarh), where prices increased by INR 50-150/t. The uptick was supported by improved buying activity in the previous session, hinting at a short-term recovery in regional demand.
Market 0verview
- Muted sentiment: Despite price gains in select pockets, overall market sentiment remained subdued, weighed down by weak downstream demand and reduced participation due to the festive holiday.
- Trading activity: Only 7,000 t of sponge iron were traded across key regions today compared to 15,000 t yesterday, sharply lower than average levels. Market participants attributed the fall to bulk bookings in earlier sessions, which curbed fresh inquiries today.
- Finished, semi-finished steel: Both segments stayed under pressure, with negligible price movements and trade activity, reflecting cautious buyer sentiment.
The market continues to lack momentum, with participants adopting a wait-and-watch stance amid an uncertain demand outlook. While the central region showed some recovery, most markets remained quiet, indicating that sustained buying interest will be needed to support any uptrend in sponge iron prices.
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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