- Sponge iron prices largely stable across regions
- Trade volumes improve d-o-d; demand remains need-based
Sponge iron prices largely remained unchanged across regions on 5 June, with a marginal decline of INR 50/t in the key Raipur market, where prices stood at INR 24,400/t ex-works. Meanwhile, the eastern Durgapur market witnessed a modest increase of INR 100/t to INR 23,750/t ex-works. Overall market activity remained subdued, as buying interest was largely confined to need-based procurement, with most bids placed at lower levels amid cautious market sentiment.
Trade activity remained slow, with enquiries limited and booking volumes staying under pressure. Demand from the finished steel segment remained weak, with no significant procurement activity reported. The subdued offtake of finished steel products continued to cap sponge iron purchases, resulting in muted demand across the market. Market sentiment remained cautious, with buyers largely restricting procurement to immediate requirements.
Trade volumes witnessed an improvement d-o-d, with total bookings reaching around 10,800 t against nearly 4,500 t recorded in the previous session. The rise was driven by better buying activity across select markets, though procurement remained largely requirement-based as buyers continued to maintain a cautious stance.
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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