- Prices eased amid subdued demand and need-based buying
- Trade volumes rose to 10,000 t; sentiment stayed cautious
India’s sponge iron market recorded a subdued price trend on 3 April, with most regions witnessing mild corrections amid weak demand and limited buying activity. Market participation remained largely need-based, reflecting cautious sentiment across key hubs.
In the eastern region, prices declined by around INR 50-100/t due to lower enquiry levels and restricted demand in the previous session. Similarly, the southern region saw a price drop of about INR 100/t, although Chennai presented an unclear market direction, indicating a lack of firm trend and overall weak clarity in sentiment.
In contrast, Central India, particularly Raipur, emerged as an exception, with prices rising by INR 200-300/t in the second half of trading. This uptick was supported by improved buying sentiment and a noticeable increase in enquiries, which boosted seller confidence and strengthened offers.
Despite this regional firmness, the broader market remained under pressure from subdued demand. However, rising raw material costs and steady demand from the finished steel segment lent some underlying support to sentiment. Pellet prices in Raipur were assessed at approximately INR 10,550/t (ex-works).
Trade volumes improved significantly to around 10,000 t, up from approximately 3,000 tonnes in the previous session, driven by better activity in the latter half of the session, though the market continues in a cautious “wait-and-watch” mode.
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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