- Sponge iron dips INR 100-300/t as demand stays sluggish
- Trade activity muted; bearish sentiment persists
Sponge iron prices declined across major regions by INR 100-300/tonne (t) on weak demand and oversupply pressure. Sellers continued to lower offers to stimulate buying interest, but persistent resistance from buyers kept the market under pressure.
Market sentiment remained subdued as buyers stayed in a wait-and-watch mode, anticipating additional price declines. Procurement was largely need-based, with no bulk buying interest observed. Weak confidence was reflected in cautious purchasing behaviour and limited visibility on demand recovery.
Demand from the finished steel segment remained sluggish, directly affecting sponge iron consumption. Reduced activity in this downstream sector led to additional pressure on sponge prices. The lack of improvement in finished steel demand continues to dampen overall market confidence.
Trading volumes were low, with total activity around 3,000 t, which was around 200 t in the last session. Transactions were limited to small quantities, highlighting weak participation. Weak trade flow reinforces the bearish outlook and contributes to continued softening in sponge iron prices. The overall pricing trend remains negative, with further correction expected in the near term.
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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