- Finished steel demand remained subdued, with buying activity slowing down.
- Buyers remained cautious and restricted at higher offer levels.
The domestic sponge iron market remained mixed today, with prices moving higher across central and eastern India. Prices increased by around Rs 50-200/t, supported by positive market movement and healthy trading activity in the previous session. The improved sentiment encouraged sellers to raise offers, while several sellers were already booked with material. Buyers showed interest at the lower levels, but mostly for requirement-based purchases, as they were comfortable with the material they had already procured.
In the southern region, prices softened by around Rs 50-100/t as sellers attempted to attract buyers. However, purchasing remained restricted as buyers were already carrying sufficient inventories and were therefore reluctant to make aggressive purchases. Sellers offered discounts to generate enquiries and encourage buying. At the same time, elevated raw material costs continued to put pressure on producers’ margins, limiting their ability to reduce prices further.
Trade volume
Overall, trading momentum remained largely need-based, with limited enquiries and buyers making purchases only against immediate requirements. No major bulk deals were observed in the market today. BigMint recorded sponge iron trades of around 11,000 tonnes, slightly lower than the previous session, indicating some moderation in buying momentum. Overall market activity remained cautious, with buyers largely adopting a wait-and-watch approach.
Rationale
Prices have been derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.
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