- Central region witnessed healthy sponge iron bookings.
- Limited finished steel demand continues to weigh on sentiment.
Domestic sponge iron prices declined by INR 100-350/t across regions today, as limited buying interest and subdued market sentiment slowed overall trading activity. However, BigMint’s Raipur PDRI assessment settled at around INR 28,100/t, up INR 50/t day-on-day, supported mainly by healthy bookings.
Overall demand remained weak, with buyers lacking clarity on market direction. Purchases were largely need-based, and no bulk bookings were observed. At the same time, finished steel prices fell by INR 100-700/t across regions, which further dampened sentiment and reflected sluggish end-user demand. This kept sponge iron prices and bookings slow throughout the day.
The central region, however, stood out. Prices there rose by INR 50/t day-on-day, and on a weekly basis sponge iron prices have climbed by INR 300/t. The increase was driven mainly by limited availability of good-quality PDRI, which prompted buyers to book material and restock ahead of the coming week. As a result, the central region recorded healthy booking volumes this week, with stronger buyer participation than other regions.
Overall, trade activity remained dull today, with buyers adopting a wait-and-watch approach. Sellers reduced offers to attract buyers, but weak finished steel demand and subdued sentiment continued to weigh on the market. BigMint recorded around 11,000 t of PDRI trades today, 1,000 t lower than the previous day.
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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