- Price correction lifts enquiries and boosts volumes
- Central demand improves; outlook remains range-bound
Indian sponge iron prices declined by INR 100-300/t across key regions on 20 February. Buying activity remained moderate during the day, with enquiries picking up in the second half of the session, leading to improved market participation and better trade volumes. Demand was primarily driven by the central region, particularly Raipur, where buying interest was comparatively stronger than in the eastern and southern markets.
Demand in the finished and semi-finished steel segments remained steady across regions, maintaining a balanced tone in the sponge iron market. The recent price correction helped revive buying interest, with enquiry levels improving and improved buyers activity in the market. Trade activity witnessed a noticeable uptick compared to earlier sessions, indicating firmer engagement between buyers and sellers.
In the near term, prices are expected to remain range bound only.
Trade volumes rose sharply to around 10,700 t today, compared to nearly 700 t in the previous session, reflecting a significant improvement in buying activity and overall market participation. The sharp rise in volumes indicates renewed buyer interest 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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