- Traded volumes decline d-o-d
- Weak steel demand weighs on prices
Domestic sponge iron prices declined by INR 100-600/t d-o-d across major amid weak demand conditions. In the key Raipur market, prices declined by INR 400/t at INR 24,650/t ex-works. In an effort to attract buyers and improve bookings, sellers lowered offer prices further; however, enquiry levels remained limited and buying activity stayed subdued, resulting in continued pressure on market sentiment.
Market participants remained in a wait-and-watch mode amid expectations of further price corrections. Procurement activity was mainly need-based, while bulk bookings continued to remain absent across regions, reflecting cautious buyer sentiment and limited confidence in near-term demand recovery.
Weak demand from the finished steel segment continued to weigh on sponge iron consumption. Muted activity in downstream steel markets and the absence of any meaningful improvement in end-user demand kept pressure on sponge iron prices throughout the day.
Overall trading activity recorded during the day was around 14,300 t, compared to nearly 12,300 t in the previous session. Most transactions were concluded at lower rates, indicating limited market participation and continued weak trade flow across regions.
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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