- Cautious buying persists amid higher offers
- Finished steel prices increased by INR 300-500/t
India’s sponge iron market recorded modest price gains of between INR 100-400/t across most major regions on 26 Nov, extending the upward trend seen earlier in the week. Sellers increased their offers in line with the recovery in semi-finished steel prices, although overall sentiment remained cautious amid higher levels. Many buyers refrained from active procurement as they had secured adequate inventories at lower rates during previous sessions.
Despite this caution, the broader market momentum remained positive. Steady inquiries and improved participation from mills supported trading sentiments. Renewed confidence—driven by bullish cues from the steel market—encouraged both traders and producers to remain active, with sellers attempting to achieve slightly higher realizations.
Sources indicated that buying was predominantly need-based, with selective deals concluded at negotiated prices. Even though sellers pushed for higher offers, transaction volumes stayed modest as buyers resisted aggressive price hikes and continued to evaluate market sustainability.
Raw material costs provided stability, with pellet prices in Raipur holding steady at INR 9,550/t (ex-works) and iron ore prices remaining firm. This consistent cost environment offered some support to sponge iron producers amid evolving market conditions.
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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