- Daily trade volumes declined
- Bookings remained limited despite lower offers
Sponge iron prices across India declined by between INR 100-450 per tonne day-on-day on 12 February, as weak market sentiment persisted amid subdued demand for finished steel. The soft demand environment continued to weigh on sponge iron procurement, keeping overall trading activity muted.
Sellers attempted to stimulate buying interest by lowering their offers, however, prevailing bearish sentiment and expectations of further price corrections discouraged buyers from committing to large bookings.
Most buyers adopted a cautious, wait-and-watch approach, anticipating additional downside before re-entering the market. Consequently, transactions remained largely need-based, with no significant bulk deals reported during the session. Despite the price reductions, buyer reluctance persisted, contributing to sluggish trade activity.
Market highlights
- Daily sponge iron trade volumes fell to approximately 3,000 tonnes, compared with around 4,000 tonnes in the previous session, reflecting limited inquiries and restrained procurement appetite.
- In the raw materials segment, pellet prices in Raipur remained firm at INR 10,450 per tonne ex-works, indicating stable sentiment in pellets even as sponge iron prices continued to face pressure.
Overall, the market tone remained bearish and largely inactive, with participants closely monitoring price trends 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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