- Trade volumes surged by around 77% amid improving sentiment
- Improved sentiment boosted seller confidence and market activity
Domestic sponge iron prices declined by INR 100-200/t day-on-day across major regions due to sluggish market movement and weak downstream demand. Limited buying interest from steelmakers and re-rollers continued to weigh on market sentiment, prompting several sellers to lower their offers to attract buyers and stimulate transactions. Despite the price correction, overall market participation remained cautious during the early part of the trading session.
Trading activity remained subdued during the first half of the day as buyers focused on need-based purchases and adopted a wait-and-watch approach amid uncertain demand conditions. Sellers offered material at lower rates to secure orders. However, sentiment improved in the second half as buyer participation increased and fresh enquiries emerged. Improved procurement activity boosted trade volumes and seller confidence, enabling some transactions to be concluded at slightly higher prices than those seen earlier in the day.
Overall, sponge iron trading activity stood at approximately 25,300 t, significantly higher than around 14,300 t recorded in the previous session. The sharp increase in traded volumes reflects improving market sentiment and stronger buyer engagement during the latter half of the day.
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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