- Higher lumps bids at OMC’s auction lift sentiment
- Inquiries improve, trading volume doubles d-o-d
Sponge iron prices across major Indian markets rose by INR 100-300/t d-o-d on 20 November, supported by improved steel market sentiment and firmer producer offers. Chennai registered the highest increase of INR 300/t amid slightly better buying interest and a more optimistic outlook. Rourkela (CDRI) was the only outlier, where prices slipped by INR 100/t due to weak local demand.
Market sentiment
Overall market momentum remained positive, driven by higher inquiries and stronger participation from buyers. Renewed confidence, supported by bullish steel prices, encouraged traders and producers to actively engage in the market. Sellers increased offers in response to steady inquiries from steel manufacturers. Additionally, sentiment received a boost from the latest Odisha Mining Corporation (OMC) iron ore auction, where lumps prices increased by INR 250/t. Both finished and semi-finished steel markets also exhibited upward movement.
Trade activity
Trading volumes saw a sharp uptick, with an estimated 20,000 t of sponge iron booked — double the previous session’s 10,000 t. Active restocking and rising inquiries prompted sellers to gradually lift prices throughout the day.
Pellet prices in Raipur remained steady at INR 9,600/t (ex-works), while iron ore prices also held firm, keeping raw material costs stable.
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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