- Finished steel trades remain slow on cautious demand
- Trade volumes soften on weak enquiries amid higher prices
The domestic sponge iron market witnessed an upward movement today, with prices rising by around INR 50-600/t across major regions. The increase was mainly around INR 600/t in the Hyderabad market, supported by overbooking in the previous trading session. However, Raipur remained an exception, with prices slipping by around INR 100/t to settle at INR 29,600/t exw-Raipur.
Overall market sentiment remained cautious despite the higher price levels, as demand continued to slow. No bulk deal was reported during the day, with most buyers adopting a wait-and-watch approach. Buyers are currently holding sufficient material and are reluctant to make fresh purchases at elevated prices. On the other hand, sellers are also carrying substantial bookings from the previous session and are showing limited willingness to reduce prices significantly.
Trading activity remained largely need-based throughout the day, with buyers purchasing only to meet immediate requirements. BigMint recorded around 8,000 t of trades today, significantly lower than the 22,000 t reported in the previous trading session. The sharp decline in volumes indicates weaker enquiries and limited buyer interest at prevailing higher price levels.
Rationale
Prices have been derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered as T1 and given aweightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.
Click here for detailed methodology
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