- Weak finished steel demand weighs on sponge iron prices
- Festive holiday slows down trading activity in some regions
Domestic sponge iron prices declined by around INR 100-200/t d-o-d across major regions. Festive-day celebrations in some regions further slowed market momentum and kept trading activity subdued. In Raipur, PDRI prices settled at around INR 29,200/t, down by INR 200/t.
Market movement remained slow, with enquiries largely limited to need-based purchases. Buyers continued to remain cautious at current levels, as expectations of further price correction kept fresh buying interest limited. Demand from the finished steel segment also remained subdued, offering limited support to sponge iron prices and weighing on overall market sentiment.
Trade activity was also slower compared with the previous day, as buyers preferred to adopt a wait-and-watch approach until a clearer market direction emerges. BigMint recorded sponge iron trades of around 5,000 t today, lower than the previous day, reflecting softer market activity. Overall, subdued demand, limited buyer participation, and cautious purchasing kept the domestic sponge iron market under pressure today.
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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