- Tight supply in eastern India supports bullish sentiment
- Semis, finished steel demand strengthens significantly
India’s sponge iron prices showed a mixed trend across regions d-o-d on 19 March. Buying activity improved during the day, with a noticeable rise in enquiries across markets. After a phase of sluggish demand in the past few days, the market witnessed better trading activity, supported by increased participation from buyers. Tight supply was observed in the eastern market, which, coupled with good enquiries, further supported overall market dynamics.
Demand in both the finished and semi-finished steel segments strengthened notably, lending a positive momentum to overall market sentiment. As a result, buying activity picked up pace, with market participants showing greater confidence and a willingness to engage in trades.
Trade volumes increased to around 12,000 t today, compared to approximately 7,900 t in the previous session, indicating improved buying activity and a gradual strengthening of market participation.
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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