- Prices edge up; buying turn cautious
- Trade volumes drop; market range-bound
Sponge iron prices increased by INR 100–400/t d-o-d across key regions on 29 January. Despite the price hike, buying activity remained moderate, as higher price levels led to some slowdown in fresh purchases. Market participants noted that buying had been healthy over the past few sessions, enabling buyers to secure material earlier; consequently, they adopted a wait-and-watch approach, holding back on further bookings while seeking clearer market direction.
Finished steel demand remained measured, while buying activity in the semi-finished segment stayed moderate to steady. However, relatively better momentum in raw material prices offered some support to overall market sentiment. Under the current market scenario, prices are expected to remain range-bound.
Trade volumes slipped to around 12,750 t today, compared with 15,800 t in previous sessions, indicating softer market participation. The uptick in prices led to reduced buying interest, as market participants turned cautious at elevated price levels. On the cost front, raw material prices remained largely stable, with pellet prices in Raipur assessed at INR 9,650/t ex-works, while iron ore prices held steady, thereby providing cost-side support to DRI producers.
Additionally at NMDC–Nagarnar’s 29 January pig iron auction, prices eased INR 100/t to INR 36,500, with 2,000 t booked out of 10,000 t, showing cautious buying but improved volumes.
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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