- Sponge prices rise across regions, except south India
- Trade volumes rise to 13,000 t, up 3,000 t d-o-d
Domestic sponge iron prices rose by INR 100-500/t across regions, with Durgapur recording the sharpest gain on the back of healthy bookings in the previous session. In Raipur, P-DRI prices edged up by around INR 50/t d-o-d to settle near INR 28,150/t. South India bucked the trend, with prices falling by INR 100-300/t.
The increase was largely cost-driven. Coal in the latest CCL auction was sold at steep premiums, pushing raw material prices higher and raising sponge iron production costs, which led producers to raise their offers. However, room for further increases appears limited, as weak finished steel demand continues to restrict buyers’ willingness to accept higher prices.
Trade activity improved amid more positive market sentiment. Around 13,000 t of sponge iron was traded today, roughly 3,000 t more than the previous day, reflecting renewed buying interest. Market participants will be watching whether this momentum holds, given the subdued demand from the downstream steel sector.
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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