- Buyers remain cautious amid steel market volatility
- Trading volume falls sharply from previous session
Sponge iron prices across India continued their downward trend on 19 November, slipping by between INR 100-300/t day-on-day. Market sentiment remained weak as overall trading interest stayed limited and demand remained subdued.
Buyers largely adopted a wait-and-watch approach, anticipating further price corrections. Purchase activity was mostly need-based, with no significant bulk bookings observed. Despite sellers attempting to revive momentum through modest price adjustments, the lack of strong buying in the past few days compelled many to reduce offers. However, even with these cuts, buyers remained hesitant to commit.
Market Highlights
- Trade Activity: Daily sponge iron trade volumes remained subdued at around 10,000 t, a notable drop from 13,500 t in the previous session.
- Regional Trends: Sellers offered mild reductions to encourage movement, but buyer participation stayed weak amid uncertainty over the near-term price direction.
- Raw Materials: Pellet prices in Raipur held steady at INR 9,600/t ex-works, indicating a balanced and stable sentiment in the raw materials market.
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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