- Modest demand prevails despite lower offers
- Pellet prices in Raipur soften by INR 300/t d-o-d
Sponge iron prices across domestic markets declined in the wide range of INR 50-400/tonne (t) on 8 December, as market sentiment remained weak due to limited trading interest and subdued demand.
Sellers attempted slight price reductions to stimulate buyers but to no avail. Despite lower offers buyers showed little enthusiasm, expecting further price correction. Most sellers were occupied clearing existing contracts focusing on dispatches which led to limited fresh offers.
However, enquiries throughout the day remained limited as buyers continued to restrict purchases to immediate requirements. No bulk bookings were reported.
Market highlights
- Trade: Daily sponge iron trade volumes remained subdued at around 7,500 t, although a tad better compared to only around 2,000t reported yesterday.
- Raw materials: Pellet prices in Raipur fell by INR 300/t, assessed at INR 9,200/t ex-works, indicating balanced and stable sentiments 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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