- Sponge iron prices surge INR 100-300/t on modest buying
- Finished steel segment yet to gain trading momentum
India’s sponge iron market saw an upward movement on 23 September, with prices rising by INR 100-300/t d-o-d. Hyderabad led the rally with the steepest gain of INR 300/t, supported by stronger regional sentiment. In contrast, Durgapur saw prices slipping by INR 50/t, reflecting localized supply-demand imbalances.
Despite the price surge, trade volumes dipped, with only about 17,400 t booked nationwide, down by nearly 4,000 t from the previous day. Market activity was largely need-based, as buyers adopted a cautious wait-and-watch stance amid higher offers.
This cautious but optimistic approach from sellers shows rising confidence in the market’s future direction. The limited availability of material, coupled with firm offers, points toward potential price stability or further upside in the short term. While trade volumes remain low for now, the bullish sentiment among producers and sellers continues to drive the index upward.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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