- Robust bookings yesterday drive sellers to raise offers
- Trade slows slightly amid buyers’ hesitation to higher prices
Indian sponge iron prices increased by around INR 100-500/t d-o-d across major regions. In Raipur, prices rose sharply, with BigMint assessing Raipur PDRI prices at INR 25,500/t, up by around INR 500/t. The rise was mainly driven by the firm sentiment seen in the previous day’s session and bookings made by buyers.
Most buyers had already secured material during the previous day’s session, limiting fresh purchases today at higher offers. Despite this, trading activity remained good during the first half. In the second half, the market slowed somewhat, with enquiries becoming limited. Sellers remained confident and raised offers, while buyers continued with moderate purchases at higher levels. Meanwhile, finished steel sales remained very dull, providing limited support to the semi-finished market and keeping demand moderate.
Overall, sponge iron trading remained healthy, with around 22,000 t of material traded today, slightly lower than yesterday. The softer trading momentum and buyer hesitation at higher prices indicate some caution in the market, although overall sentiment remained firm.
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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