- Buyers avoid bulk bookings, expecting further price corrections
- South sees steeper price drop amid influx of cheap eastern material
Sponge iron prices across India continued to weaken on 24 October, amid muted demand and subdued trading activity. Prices declined by INR 50-300/t d-o-d, with the sharpest corrections observed in the southern region, particularly Bellary and Hyderabad, where tags fell by INR 300/t due to weak downstream demand and an influx of cheaper material from eastern suppliers. Other key producing regions saw moderate declines of INR 50-150/t, reflecting limited buying interest and low inquiry levels.
Overall sentiment in the domestic sponge iron market remained bearish, pressured by ongoing weakness in the semi-finished and finished steel segments. Buying was largely need-based, with buyers refraining from bulk purchases amid expectations of further price corrections. Inquiry levels stayed muted across most regions, though the central zone recorded moderate interest from local buyers.
Trade volumes were estimated at around 9,000 t on a pan-India basis, underscoring cautious participation. Sellers opted to maintain lean inventories to minimise exposure in a weak pricing environment. Given the sluggish demand and overall cautious sentiment, near-term sponge iron prices are likely to remain under pressure.
Meanwhile, pellet prices in Raipur held steady at INR 9,900-10,000/t DAP, indicating stable sentiment in the local market despite the softness 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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