- Weak finished steel demand weighs on market sentiment
- Limited buyer participation keeps the market muted
Domestic sponge iron market declined by around INR 100-700/t across regions, with the sharpest drop of Rs 700/t seen in Durgapur. The fall was mainly driven by weak finished steel demand and limited acceptance of prices at higher levels. BigMint’s Raipur PDRI settled at around Rs 28,100/t, down Rs 400/t.
Overall market sentiment remained slow and bearish today due to sluggish demand in the finished steel segment. Sponge iron prices also dropped, while finished steel fell by Rs 200-500/t across regions. Sellers reduced offers to attract buyers, but enquiry levels remained very poor in the market, and no bulk deals were observed.
Buying activity stayed subdued even as offer prices softened, with buyers maintaining a cautious, silent stance through the day. Around 6,000 tonnes of sponge iron trade was recorded today, nearly 2,000 tonnes lower than the previous session, reflecting weak buyer participation and muted market momentum. Overall, the trend indicates continued price pressure and thin trading activity, with buyers holding back in anticipation of further softening.
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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