- Robust demand drives market upswing
- Demand-side tightness supports price rally
India’s sponge iron prices witnessed an upward movement, rising by INR 50-600/t across regions on 26 March, with Raigarh recording the steepest increase of around INR 600/t. The market experienced improved momentum during the day, supported by healthy buying activity and a noticeable rise in enquiries across regions.
Demand was particularly strong in the central and eastern markets, where buyers actively participated in procurement. The rise in buying interest was supported by evolving market dynamics and improved demand visibility, encouraging consumers to increase sponge iron procurement. This shift further strengthened market sentiment and supported higher transaction volumes across key hubs.
From both the finished and semi-finished steel segments demand showed improvement, supporting stronger buying interest in the market. With better demand visibility, procurement activity picked up, leading to increased buying.
Trade volumes witnessed a sharp increase compared to the previous session, with transactions rising to around 20,000 t from approximately 7,300 t yesterday. The significant jump reflects strong market activity, supported by improved buying interest and higher participation. Enhanced demand visibility encouraged bulk procurement, leading to a notable uptick in overall trading momentum.
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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