- Need-based buying keeps trade activity subdued
- Demand from finished steel segment remains muted
Domestic sponge iron prices declined by around INR 100-1,000/t d-o-d across major regions amid weak buying interest and surplus availability. In Raipur, PDRI prices settled at around INR 28,500/t, down by INR 550/t. Raigarh saw the steepest decline of INR 1,000/t, with prices settling at around INR 28,000/t.
Market movement remained slow, with enquiries largely limited to need-based purchases. Sellers continued to face pressure amid surplus material and fewer buyers, while working at lower levels remained limited. Outside selling of sponge iron also remained subdued, further weighing on market sentiment. Demand from the finished steel segment remained weak, providing limited support to sponge iron prices.
Trade activity remained subdued, as buyers continued to adopt a wait-and-watch approach amid expectations of further correction. BigMint recorded sponge iron trades of around 8,200 t today, higher than the previous day, although overall market activity remained weak. Despite the sharp d-o-d decline, prices are not expected to see significant near-term correction, as lower working levels may limit further downside.
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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