- Prices in south hold firm despite muted buying
- Trade volumes decline sharply by 80% d-o-d
Sponge iron prices showed mixed trends across India on 5 December, declining by INR 100-300/t d-o-d in most regions due to weak steel market sentiment and limited trading interest. Buyers remained cautious, resulting in restricted overall activity.
In the eastern and central regions, prices fell due to limited buyer interest. Sellers were largely occupied with dispatches, as the last two trading sessions saw healthy bookings. Robust trading in the previous days led to fewer enquiries today and a quieter market, prompting sellers to reduce offers. In the southern market, prices remained largely stable with no major corrections, but buying activity remained muted, and overall demand was limited.
Sellers attempted small price cuts to stimulate movement; however, buyers showed minimal interest even at lower levels, anticipating further price corrections. Liquidity constraints in certain regions also exerted pressure, keeping participation subdued.
Market highlights
- Trade activity: Daily sponge iron trade volumes dropped sharply by over 80% to around 2,000 t, compared with 12,000 t in the previous session.
- Raw material prices: Pellet prices in Raipur remained steady at INR 9,550/t ex-works, indicating balanced sentiment in the raw material segment.
- Market sentiment: Overall sentiment remained bearish, with buying restricted to need-based procurement as buyers continued with a wait-and-watch approach.
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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