- Sponge iron prices fall up to INR 1,500/t w-o-w
- Weak demand, limited buying keep trade activity subdued
Domestic sponge iron prices continued their downtrend this week, falling by INR 100-500/t d-o-d and INR 500-1,500/t w-o-w. The eastern region saw the sharpest correction, with prices dropping around INR 1,500/t w-o-w. Dull demand and limited buying enquiries at prevailing levels pressured sellers to reduce their offers. However, the lower prices did attract healthy buying in the eastern region over the course of the week.
Higher input costs kept sellers from offering deeper discounts, while buyers stayed in wait-and-watch mode and procured only limited quantities. Sluggish demand in the finished steel segment further dampened market sentiment, with sellers cutting finished steel prices by around INR 100-600/t d-o-d.
Overall, trade activity remained need-based, and no major bulk deals were reported in the region. BigMint recorded trades of about 5,000 t today, nearly 4,000 t lower than the previous day, which reflects softer buyer activity and limited market participation.
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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