- Limited market inquiries weigh on prices
- Buyers cautious amid price correction
Sponge iron prices across India declined by INR 50-300/tonne (t) day-on-day on 12 December, as weak market sentiment persisted amid subdued finished steel demand. The soft demand environment continued to limit sponge iron procurement, keeping overall trading interest muted. Sellers attempted to stimulate buying by reducing offers; however, bearish sentiment and expectations of further downside restricted buyers from committing to sizeable bookings.
Most buyers maintained a cautious, wait-and-watch approach, anticipating additional price corrections before entering the market. As a result, transactions were largely need-based, with no major bookings reported during the session. Despite price adjustments, buyer reluctance persisted, contributing to the continued sluggishness in trade activity.
Market highlights
- Daily sponge iron trade volumes remained significantly lower, estimated at around 3,000 t compared with 7,500 t in the previous session, reflecting limited inquiries and reduced procurement appetite.
- In the raw material segment, pellet prices in Raipur stayed firm at INR 9,300/t exw, reflecting stable sentiment even as sponge iron prices faced continued pressure.
Overall, the market remained bearish and inactive, with participants closely monitoring price movements before taking fresh positions.
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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