- South gains offset central and eastern declines in sponge iron market.
- Need-based buying keeps trades limited and below offer levels.
The Indian sponge iron market witnessed a mixed price trend today. Prices in the central and eastern regions declined by INR 50-200/t d-o-d, while the southern market recorded an increase of INR 50-300/t, supported by relatively better regional demand. Buying activity remained moderate throughout the day, with a persistent bid-offer gap leading to active negotiations. As a result, most transactions were concluded at levels lower than the prevailing offer prices. However, bulk procurement continued to remain absent, as buyers largely restricted purchases to immediate requirements, keeping overall trading volumes limited.
Raw material
On the raw material front, Raipur pellet prices is around INR 9,400/t. In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis remained stable at around $105/t, and domestic non-coking coal prices at Visakhapatnam port also remained stable d-o-d at approximately INR 10,350/t.
Trade volume
Buyers continued to procure only need-based volumes, with no significant bulk deals reported. BigMint recorded sponge iron trade volume of around 12,600 t, nearly 14,300 t lower than the previous trading session.
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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