- Sellers try to lift prices but fail amid weak demand
- Trade volume rises d-o-d on opportunistic bookings
Sponge iron prices across India slipped by INR 100-200/t d-o-d on 24 November, amid weak steel market sentiment and limited trading interest. Buyers remained cautious, keeping overall activity restricted.
Price dynamics
CDRI: Prices declined by INR 100-200/t across most regions. The only exception was Raigarh, where prices inched up by INR 100/t, supported by higher offers.
PDRI: Prices fell by INR 100-150/t in Ramgarh, Bellary, and Durgapur, while Raipur witnessed a slight increase of INR 50/t. Other regions remained largely stable with muted movements.
Throughout the day, sellers attempted to push prices upward, but a lack of active buying and limited participation kept the market in a range-bound zone. Buyers adopted a wait-and-watch approach, seeking clarity before entering bulk deals, as confusion and mixed signals dominated market sentiment.
Daily trade volumes were assessed at around 11,000 t, reflecting low participation in general from both traders and end-users. However, this volume is higher than Friday’s 8,000 t. While a few opportunistic buyers considered bookings at reduced levels, broader uncertainty about short-term market direction prevented any significant upswing in demand.
Pellet prices in Raipur held steady at INR 9,600/t ex-works, indicating a balanced and stable sentiment in the raw materials market.
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%.
Click here for detailed methodology
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