- Eastern region sees improved trade activity ahead of Durga Puja festival
- Lower prices encourage buyers to restock material; trade volume rises d-o-d
Domestic sponge iron prices declined by INR 50-500/tonne (t) d-o-d across regions today. In Raipur, prices settled at around INR 28,100/t, down INR 200/t d-o-d, as limited finished steel demand and thin buyer participation weighed on market sentiment.
Overall demand remained dull, mainly due to sluggish movement in the finished steel segment. Finished steel prices fell by around INR 200-500/t across regions, and this pressure cascaded down the value chain, pushing downstream segments, including sponge iron, lower on a d-o-d basis.
Trade activity stayed subdued overall, though lower price levels drew improved buying interest in the eastern region, lifting total volumes. BigMint recorded trades of around 10,000 t today, up by about 4,000 t from the previous day, reflecting improved buyer appetite at reduced rates.
Additionally, with vehicle movement in West Bengal expected to slow after the next 3-4 days due to the upcoming Durga Puja festivities, buyers procured material in advance, which has kept buying activity healthy in the eastern region.
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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