- Prices decline across regions, Chennai sees slight uptick
- Weak demand and lower volumes keep sentiment cautious
India’s sponge iron prices declined by INR 100-500/t across regions, while the Chennai market bucked the trend, recording an an increase of around INR 200/t. Buying activity remained largely restricted to need-based procurement, with overall participation staying limited. Weak buying interest, coupled with continued price corrections, kept market sentiment subdued throughout the day.
Demand from both the finished and semi-finished steel segments remained muted today, with price corrections observed across both segments. Consequently, buying activity was largely limited to need-based procurement, reflecting a cautious and subdued market sentiment.
Trade volumes recorded was around 9,100 t today from approximately 6,600 t in the previous session, overall weaker buying interest and lower market participation observed into the market. The decline in volumes reflects a cautious sentiment, with buyers largely adopting a wait-and-watch approach amid ongoing uncertainty.
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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