- Tepid finished steel demand weighs on sponge iron trade
- Sellers keep price cuts limited amid elevated pellet costs
The Indian sponge iron market continued to witness bearish momentum, with buying interest subdued despite lower spot offers. Prices corrected by INR 50-200/t d-o-d across major production hubs, owing to subdued buyer sentiment amid lacklustre finished steel demand. Notably, Ramgarh and Hyderabad regions witnessed the steepest declines.
Despite weak demand, many producers refrained from reducing offers significantly due to elevated pellet costs, which limited active participation in the spot market. Pellet prices in Raipur held steady at INR 9,700/t ($108/t) exw, reflecting mixed sentiment and balanced supply-demand dynamics in the raw material segment.
Finished and semi-finished steel markets also remained subdued, with sparse inquiries and muted procurement, which further weighed on sponge iron demand.
Deals for around 7,000 t were closed today across India, declining from the previous day’s 11,000 t.
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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