- Prices soften across regions; correction trend continues
- Buying picks up; enquiries and deals rise
Domestic sponge iron prices softened by INR 100-300/t d-o-d across most regions on 21 April. In contrast, the Raipur and Raigarh markets bucked the broader downtrend, registering a price increase of INR 100-200/t, supported by relatively better local demand dynamics.
Market activity improved notably during the day, with buying interest strengthening to a moderate level compared to the subdued trend seen in recent sessions. Enquiries picked up across key markets, reflecting a gradual return of participants and improved sentiment. The recent correction in prices encouraged buyers to re-enter the market, leading to better deal conversions. Trade volumes also witnessed a healthy uptick, indicating active participation into the market. Overall, the market tone turned relatively positive, supported by steady enquiries and firmer trading activity.
Prices in both the finished and semi-finished steel segments remained under pressure in the first half amid the ongoing correction; however, a recovery was observed in the second half, with prices inching up. Buying activity improved during the day, with moderate participation seen in the market. The uptick in downstream demand supported sponge iron buying, as enquiries increased and deal conversions improved.
The recorded trade volume today stood at around 21,300 t, compared to approximately 7,900 t in the previous session, indicating a sharp uptick in market activity. The significant rise in volumes reflects improved buying interest and stronger participation.
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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