- Eastern region buying remained healthy ahead of Durga Puja closures.
- Weak finished steel demand weighed on overall market sentiment.
Sponge iron prices fell by INR 100-400/t across regions today. In Raipur, prices settled at around INR 27,800/t, down INR 200/t day-on-day. Buying activity stayed subdued as the festive season set in, with buyers purchasing only for immediate needs. Weak demand for finished steel added to the slowdown and limited any upward movement.
Thin buyer participation pushed sellers to lower their offers. Under pressure to clear inventory, many sellers cut prices to attract buyers. However, the ongoing festive season kept procurement limited, so the lower rates did little to lift demand.
Overall trade volume was around 9,000 t, about 4,000 t higher than the previous day. Most of the increase came from the eastern region, where markets in Bengal will largly close from tomorrow for Durga Puja. Buyers there procured material in advance of the holiday, which supported healthy volumes in the region. Outside the east, market sentiment remained cautious, and participants expect activity to stay muted through the festive period.
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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