- Trade volumes decline as buyers adopt wait-and-watch stance
- Subdued finished steel demand weighs on sponge iron prices
India’s sponge iron prices declined by INR 100-400/t d-o-d across major markets on 18 May, amid subdued trading activity and weak buyer participation. In the benchmark Raipur market, sponge iron prices fell by INR 250/t to INR 25,450/t ex-works. Sellers pointed to receiving limited enquiries throughout the day, as buyers largely refrained from aggressive bookings amid expectations of further price corrections in the near term.
Continued weakness in finished steel demand and sluggish movement in the semi-finished segment kept pressure on sponge iron prices across regions. Buyers maintained a wait-and-watch stance, while sellers attempted to secure deals through flexible negotiations to sustain trade flow.
Trade volumes also declined compared to the previous session, reflecting muted market participation. As per BigMint’s assessment, total sponge iron trade volumes stood at around 9,750 t, down from approximately 11,150 t recorded in the previous session.
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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