- Prices rise, buying stays cautious
- Volumes dip amid weak participation
India’s sponge iron prices edged up by INR 50-300/t across most regions, while the Chennai market saw a correction of up to INR 400/t. Buying activity remained subdued to moderate, as the recent uptick in prices prompted resistance from buyers at elevated levels. Moreover, improved procurement during the previous sessions—when prices had softened—led to reduced fresh bookings today, keeping overall trading activity relatively limited.
Demand from both the finished and semi-finished steel segments remained moderate today, keeping overall market sentiment largely steady. As a result, buying activity was limited to need-based procurement, with participants maintaining a cautious approach in the market.
Trade volumes declined to around 6,600 t today from approximately 12,000 t in the previous session, reflecting weaker buying interest and reduced market participation. The drop in volumes suggests a cautious market sentiment, with buyers adopting a wait-and-watch approach amid prevailing price trends.
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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