- Sponge iron availability in eastern region remains limited
- Buyers cautious, need-based deals continuing at higher levels
Domestic sponge iron prices witnessed an upward movement of around INR 100-500/t across regions. BigMint’s Raipur PDRI assessment settled at around INR 25,700/t exw-Raipur, up INR 200/t. The rise was mainly driven by positive market sentiment, higher raw material costs and limited material availability. Overall sentiment remained firm, supported by improved finished steel movement.
In the eastern region, sponge iron availability remained limited, mainly due to maintenance shutdowns at some plants. After relatively slow demand last week, buyers participated more actively in trade this week, boosting seller confidence. As a result, sellers raised offers, while buyers continued to book material at higher levels, albeit moderately and on a need-based basis. Trade activity softened slightly at elevated prices, while sellers remained confident amid margin pressure in sponge iron production.
Trade activity was concentrated mainly in the eastern region, while activity in other regions remained relatively limited. BigMint recorded around 18,000 t of sponge iron trades, down by 4,000 t from the previous day, indicating cautious buyer participation at higher price levels. However, need-based buying continued, supporting the overall positive market sentiment.
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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