- Trade volumes rise as buyers book material at discounted levels
- Finished steel prices decline by INR 100-600/t across key hubs
Domestic sponge iron prices declined by around INR 100-700/t d-o-d across regions, driven by limited buyer participation at higher price levels, prompting sellers to reduce their offers to attract buyers. In Raipur, PDRI prices were assessed at around INR 29,050/t, down by INR 300/t, amid lower demand and continued resistance from buyers at higher rates.
Overall market activity remained slow, with buyers largely avoiding higher offers and preferring to book material at discounted levels. Sellers were seen offering discounts to generate enquiries, while buyers waited for lower prices before committing to purchases. Demand from the finished steel segment remained very weak, further pressuring the sponge iron market.
Finished steel prices also declined by around INR 100-600/t across regions due to weak demand, which further weighed on market sentiment. A sponge iron buyer from Durgapur said, “The market may recover after a day or two due to higher raw material costs. Today’s ECL coal auction also witnessed significantly higher prices, which could limit further downside in the near term.”
Overall trade momentum was moderate today, with buyers showing better participation at lower price levels. Market participants indicated that some buyers booked material after waiting for 2-3 days. BigMint recorded around 20,000 t of trade volume today, nearly 10,000 t higher than yesterday, indicating that buying interest remains moderate once prices reach acceptable 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%.
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