- Bid-Offer disparity in market
- Market sentiment weak amid limited demand
Sponge iron prices across India declined by INR 50-350/tonne (t) day-on-day (d-o-d) on 9 December. Market sentiment remained weak due to subdued finished steel demand, which continued to restrict sponge iron buying. Buyers largely preferred a wait-and-watch approach, anticipating further price falls before making sizeable bookings. Overall purchase activity stayed need-based, with no major bulk deals reported.
Sellers attempted to reduce offers slightly to stimulate movement; however, buyer participation remained limited even at lower price levels as expectations of further corrections persisted. Market sentiment remained poor, with weak demand and muted enquiries from buyers contributing to the day-on-day price decline. A noticeable bid–offer disparity in the sponge iron market further suppressed trade volumes, and no bulk bookings were observed.
Market highlights
- Trade activity: Daily sponge iron trade volumes stood at around 3,000 t, sharply down from 7,500 t in the previous session.
- Raw material prices: Pellet prices in Raipur held steady at INR 9,300/t ex-works, reflecting balanced and stable sentiment in the raw materials segment.
- Pigiron Update: In today’s NMDC Nagarnar pig iron auction bid increased by INR 100/t and assessed at INR 31,200/t ex-works.
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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