- Finished steel prices rise by INR 200-1,300/t despite limited demand
- Buyers remain cautious amid higher prices, engage in selective buying
Domestic sponge iron prices rose by around INR 300-100/t across regions following strong buying activity yesterday, which boosted market confidence and encouraged sellers to raise their offers. In Raipur, PDRI prices settled at around INR 29,300/t, up by INR 600/t, supported by active bookings during the previous session.
Overall market sentiment remained on the higher side, with healthy enquiries and good trade movement reported today. Buyers had actively booked sizeable quantities of material the previous day, while today’s purchases were largely need-based and at higher rates. The price rise was mainly driven by strong demand for finished steel in the previous session, which improved sentiment and provided additional support to sponge iron buying.
With raw material prices already trading at elevated levels, even a small improvement in market sentiment has significantly strengthened sellers’ confidence. Sellers are therefore maintaining firm offers, while buyers continue to book material selectively.
Overall trade activity remained need-based. BigMint recorded trade volumes of around 11,000 t, nearly 6,000 t lower than the previous day, indicating a cautious approach among buyers at higher price levels.
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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