- Buyers remain cautious at prevailing price levels.
- Weak finished steel demand continues to weigh on the market.
The domestic sponge iron market witnessed a correction on September 1, with prices declining by around INR 100-250/t across major regions, mainly due to limited enquiries and buyer hesitation at prevailing higher price levels. In Raipur, BigMint PDRI prices settled at around INR 29,350/t, down INR 250/t, exw-Raipur. Overall market sentiment remained on the weaker side, with buyers showing limited interest in procurement at current price levels and largely restricting purchases to immediate requirements.
Market participants remained in a wait-and-watch mode, while bulk trading activity continued to remain subdued. Buyers were cautious about making larger commitments amid expectations of further price corrections. Sellers, meanwhile, were also seen reducing offers slightly, but aggressive price cuts were largely avoided as some had already booked material and were reluctant to chase the declining market. As a result, only limited price corrections were witnessed across major markets.
Trading activity remained slow overall, reflecting cautious buying sentiment. BigMint recorded trade volumes of around 10,000 t today, compared with approximately 8,000 t yesterday, indicating some need-based buying at lower price levels in select regions. overall market activity remained soft, with buyers continuing to adopt a cautious approach and preferring to wait for clearer price direction before committing to bulk purchases.
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%.
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