- Buyers await OMC auction results, market participation limited
- Trade volumes decline due to limited buying interest
Domestic sponge iron prices rose by INR 50-300/t across regions today. In Raipur, prices settled at around INR 28,050/t, up INR 50/t day-on-day, supported by healthy buying interest in the region.
Overall demand, however, remained slow and largely need-based. Market participants are awaiting the OMC auction results, which kept participation in the spot market limited. Buyers adopted a wait-and-watch approach at higher offers, further restricting trade activity. Weak finished steel demand also gave little support to sponge iron prices.
Trade movement stayed sluggish. BigMint recorded around 12,000 t of sponge iron trades today, down 2,000 t from the previous day, reflecting softer market sentiment. Going ahead, the market is likely to take direction from the OMC auction outcome and any improvement in finished steel demand.
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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