- Prices edge up but enquiries remain limited
- Volumes drop as prior buying dampens activity
Domestic sponge iron prices increased by INR 100-400/t d-o-d across regions on 22 April. However, select markets such as Ramgarh and Chennai witnessed a decline of INR 50-100/t, diverging from the broader uptrend. Buying activity remained low to moderate, as buyers had already secured sufficient material in the previous session. At elevated price levels, enquiries were limited, reflecting cautious market participation. Additionally, the eastern market witnessed slower activity due to the impact of upcoming state elections.
Buying activity in both finished and semi-finished steel segments remained subdued, with limited enquiries observed in the market. Overall participation was low, as buyers stayed cautious and transactions were largely restricted to immediate requirements. Healthy procurement in the previous session led to a slower market sentiment today, resulting in reduced urgency and fewer fresh enquiries.
The recorded trade volume today stood at around 10,600 t, compared to approximately 21,300 t in the previous session, indicating a notable decline in market activity. The drop in volumes reflects weaker buying interest and relatively lower participation from market players.
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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