- Positive trade movement seen in the market during second half
- Central region witnesses strong trade activity and buyer participation
Domestic sponge iron prices declined by around INR 50-300/t during the session, mainly due to dull buying interest in the previous session. In the first half, sellers reduced offers to attract buyers, while both finished steel and semi-finished steel markets remained under pressure. However, lower offers encouraged buyers to return to the market in the second half, resulting in improved trade volumes across the central region. Raipur sponge iron prices were assessed at around INR 25,000/t exw Raipur, down by INR 200/t.
Market activity remained subdued initially as sellers lowered offers amid weak trade movement seen last week. Buyers, who were holding limited inventories, also participated actively as prices became more attractive. The improved buying interest supported trade momentum, with a better flow of transactions seen across the central region and later in the eastern market.
In the central region, sponge iron trade picked up significantly, with sellers aggressively booking material in bulk. This strong trade activity improved sellers’ sentiment and confidence, supporting prices in the Raigarh region, where sponge iron prices increased by around INR 100-200/t.
The improved trade flow indicates a positive outlook for tomorrow. BigMint recorded around 29,000 t of sponge iron deals, highlighting stronger buyer participation and renewed market activity.
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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