- Market participants adopt wait-and-watch stance
- Sellers reduce offers amid weak market activity
Sponge iron prices in India declined by INR 100-250/tonne (t) d-o-d across major markets, driven by weak demand and price uncertainty. Sellers reduced offers, but buyers largely stayed on the sidelines, limiting purchases to need-based procurement, while avoiding bulk bookings amid a cautious market environment.
Participants continued to avoid building inventories, anticipating further price corrections. Weakness in downstream steel segments further pressured sponge iron prices, reinforcing a cautious outlook across regions and limiting the scope for any short-term recovery.
The overall market sentiment stayed bearish, as no supportive cues emerged from the semi-finished and finished steel segments. This lack of direction discouraged speculative buying, keeping market participation low.
Trading activity remained subdued due to the ongoing festive season, with deals for only around 5,500 t concluded. Inquiries were limited, and most buyers refrained from large-scale purchases, preferring to meet immediate requirements only.
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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