- Mills keep offers stable despite need-based activity
- Semis, finished steel demand remain moderately weak
India’s sponge iron prices declined by INR 100-200/t, mainly in the eastern and central regions, while the southern market remained largely stable amid subdued demand conditions. Despite the marginal correction, mills across regions largely attempted to hold their offers to avoid any sharp fall in prices. Overall, buying activity remained low to moderate, with market participants largely resorting to need-based procurement, indicating a cautious approach toward fresh bookings.
Meanwhile, demand in both the finished and semi-finished steel segments remained moderate, with no significant improvement in overall market sentiment. Some price corrections were also observed in these segments. Enquiry levels stayed limited, and buying activity remained largely cautious, reflecting soft market sentiment.
Trade volumes were recorded at around 4,000 t today, compared to approximately 8,200 t yesterday, reflecting muted trading activity in the market, as participants largely maintained a wait-and-watch approach.
On the cost front, pellet prices remained stable, with Raipur pellets assessed at around INR 11,000/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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