- Trade momentum strengthens amid higher buyer participation and enquiries.
- Firm finished steel prices continue supporting sponge iron market.
Domestic sponge iron prices increased by INR 200-900/t across major regions on August 21, supported by higher raw material costs and firm market sentiment. The market witnessed stronger late-evening activity on the previous day, encouraging buyers to actively book material amid expectations of further price increases.
PDRI prices rose by around INR 400-800/t across regions, with Raipur PDRI assessed at approximately INR 27,750/t exw Raipur. CDRI prices also moved up by INR 200-900/t, with Rourkela CDRI assessed at around INR 27,900/t exw Rourkela.
The upward movement was mainly driven by rising coal and pellet costs, which increased input expenses and put pressure on sellers’ margins. As a result, sellers attempted to push offers higher. Firm finished steel prices also provided additional support to the sponge iron market.
Although overall demand remained moderate, buyer enquiries increased noticeably. However, higher offers limited conversion of enquiries into actual deals, and no major bulk transactions were reported. BigMint recorded trade activity of around 22,000 tonnes, up by approximately 15,000 tonnes from the previous day, indicating improved buyer participation and stronger market engagement.
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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