- Finished steel prices rise by INR 100-500/t
- Positive sentiment lifts DRI offers by INR 100-250/t
Sponge iron prices across markets strengthened by INR 100-250/t d-o-d due to improved sentiment across the value chain and firmer producer offers. However, prices declined in Chennai (PDRI) and Rourkela (CDRI), by INR 200/t in both regions, due to regional demand-supply imbalances.
Offers moved higher d-o-d, though actual buying remained largely need-based, reflecting continued buyer resistance at elevated prices. While enquiry volumes showed some improvement, the conversion rate to confirmed trades remained limited. Sellers attempted to revive interest through competitive pricing, and sentiment gradually improved due to increased activity in the semi-finished steel segment.
Trade volume
Total trade volume stood at approximately 13,000 t, marginally lower than the previous day’s 13,500 t, indicating a slight loss of momentum. Raw material prices remained stable, with pellet prices in Raipur holding at INR 9,300/t (ex-works), while iron ore prices continued to trade firm, providing cost support to sponge iron producers.
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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