- Mixed prices; sentiment improves on post-holiday restocking.
- Buying picks up, but remains need-based; prices seen range-bound.
Sponge iron prices were mixed across regions on 27 January, with market sentiment improving as buyers returned for restocking after the weekend. In Raipur, prices inched up by INR 50/t d-o-d, and buying activity remained good throughout the day. On the other hand, the eastern region witnessed a decline of INR 100–200/t d-o-d, where buying activity was moderate, with purchases largely confined to need-based requirements and limited interest observed.
Enquiries in the finished steel segment remained limited, while the semi-finished steel market continued to witness moderate interest. However, as per the current market scenario, prices are expected to remain range-bound. Moreover, buying activity observed today was largely driven by post-holiday restocking following Vasant Panchami and the long weekend, with purchases mostly confined to need-based requirements.
Trade volumes increased to around 12,050 t today from approximately 9,700 t in the previous session, indicating improved buying interest. On the cost front, raw material prices were largely stable, with pellet prices in Raipur assessed at INR 9,650/t ex-works and iron ore prices holding steady, providing cost-side support to DRI 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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