- Sponge iron prices rose by INR 50-400/t across key regions.
- Higher sponge iron prices supported a rise in finished steel prices
Domestic sponge iron prices strengthened on August 17, with prices increasing by around INR 50-400/t across key regions. The rise was mainly supported by positive market sentiment, increased buyer interest in raw materials and a rise in enquiries. Limited availability of good-quality material further supported the price hike, while higher raw material costs continued to put pressure on finished steel producers’ margins. Overall, market participants remained inclined to push prices higher, resulting in moderate but steady buying activity.
In eastern India, good demand was seen, while demand from Nepal continued to remain firm. The combination of limited availability and sustained demand supported price increases across the region. Buyers were seen actively enquiring at prevailing rates, although some selective bookings were also reported due to higher prices.
Trade movement showed a moderate recovery, with good volumes booked across several regions. BigMint recorded trade of around 24,000 tonnes, an increase of nearly 13,000 tonnes from the previous day’s session, indicating stronger buyer participation. Despite some selective buying at elevated price levels, overall trade momentum remained positive, supporting the firm market trend.
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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