- Liquidity constraints limit trade activity
- Finished steel demand remains subdued
Sponge iron prices across India slipped by INR 50-200/tonne (t) d-o-d on 21 November. Market sentiment was weak amid subdued finished steel demand, which, in turn, limited sponge iron procurement. Buyers mostly maintained a wait-and-watch approach, expecting further price corrections and clarity on trends before making any sizeable bookings. Purchase activity remained largely need-based, with no significant bulk deals heard.
Sellers attempted to reduce offers slightly to encourage movement, but buyers showed little interest even at lower prices, expecting additional corrections. Liquidity constraints in some regions also added pressure, keeping overall participation muted.
Market highlights
Trade activity: Daily sponge iron trade volumes remained subdued at around 8,000 t, a sharp decline from 20,000 t in the previous session.
Raw material prices: Pellet prices in Raipur held steady at INR 9,600/t ex-works, reflecting balanced and stable sentiment in the raw materials 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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