India: Sponge iron market witnesses volatility, buyers remain cautious -15 Dec

• Spot prices vary across major markets
• Trade volume rises d-o-d on opportunistic bookings

India’s sponge iron market recorded a mixed price trend on 15 December as region-specific demand conditions and ongoing uncertainty influenced prices. Market participants remained cautious, adopting a wait-and-watch approach and limiting purchases to need-based deals. Volatility persisted throughout the session as buyers hesitated to commit due to unclear market signals.

Market highlights

• East: In the eastern region, prices increased by INR 50-200/t, supported by improved market sentiment and higher buyer enquiries. Although trade volumes remained moderate, the marginal improvement in demand provided limited support to prices and slightly boosted market activity.
• South: The southern region witnessed price pressure in CDRI, with values declining by INR 100-200/t, while PDRI prices remained stable. Market activity was subdued due to weak enquiry levels and reduced buyer participation. Sellers refrained from aggressive offers, resulting in limited transactions. Muted demand conditions weighed on CDRI prices, whereas stability was seen in PDRI prices even as trade volumes remained low.
• Central: In the central region, sponge iron prices rose by INR 50-200/t, driven by higher buyer enquiries and carryover positive sentiment from the previous session. Improved buyer participation supported the price increase.

Overall, the sponge iron market remained highly volatile, with prices moving unevenly across regions. Buyer uncertainty regarding near-term pricing trends resulted in selective participation, keeping sentiment cautious.

Daily trade volumes were assessed at approximately 13,500 t, up by about 3,000 t from the previous session. The market remained volatile, with uneven regional price movements and cautious sentiment expected to persist in the near term. Meanwhile, pellet prices in Raipur remained unchanged at INR 9,300/t exw, suggesting balanced fundamentals and steady sentiment in the raw material segment.

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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