- Price correction supports buying and trade volumes
- Market participation improves amid stable pellet prices
Indian sponge iron prices declined by INR 50-500/t across key regions on 17 February, with Chennai witnessing the steep correction of around INR 500/t. Buying activity improved to a moderate level during the day, as the price decline encouraged greater buyer participation. Enquiry levels strengthened compared to previous sessions, reflecting improved market interest. As a result, overall trade activity witnessed an improvement.
Demand in the finished and semi-finished steel segments remained sluggish across regions, influencing the overall tone of the sponge iron market. The recent price decline supported improved buying interest, with more participants actively entering the market and enquiry levels showing noticeable improvement. Trade activity also strengthened compared to previous sessions, reflecting better engagement between buyers and sellers. In the near term, prices are likely to move within a narrow range, with further direction dependent on the pace of demand recovery and sustained improvement in market participation.
Trade volumes increased significantly to around 9,000 t today from nearly 1,600 t in the previous session, indicating improved buying activity and better market participation. The rise in volumes reflects renewed interest from buyers following the recent price correction. On the cost front, pellet prices remained stable, with Raipur pellets assessed at around INR 10,450/t ex-works.
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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