- Buyers stay on wait-and-watch mode after sufficient bookings
- Sellers limit price cuts amid margin pressure and weak enquiries
India’s sponge iron market weakened, with prices declining by around INR 50-250/t across most regions as limited enquiries and slow trading activity weighed on spot demand. Sellers selectively reduced offers to attract buyers, but fresh procurement remained subdued as most consumers had already covered their immediate inventory requirements.
Market participation remained largely need-based, with buyers adopting a wait-and-watch approach amid uncertainty over price direction and broader market momentum. The limited response to lower offers indicated that price reductions alone were insufficient to stimulate significant fresh demand.
Raw material pressure limits downside
Raw material prices remained under pressure, squeezing producer margins and prompting selective offer reductions. However, the downside in sponge iron prices remained relatively contained as sellers attempted to protect margins rather than aggressively chase volumes. In the southern region, prices remained stable. Sellers were relatively less willing to reduce offers as they had sufficient bookings in hand, providing some resistance to the broader downward trend.
According to BigMint, sponge iron trade volume was estimated at around 7,000 t, approximately 10,000 t lower than the previous day. The sharp decline reflects weak buying interest, limited enquiries and slower market movement
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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