India: Sponge iron prices fall up to INR 100-350/t d-o-d on weak buying interest

• Weak finished steel demand weighs on market sentiment
• Limited buyer participation drags sponge iron prices lower

Sponge iron prices declined by INR 100-350/t today, with the fall concentrated mainly in the eastern region. In Raipur, PDRI prices settled at around INR 29,150/t, down INR 150/t d-o-d, as limited enquiries and thin buyer participation kept the market slow.

Finished steel demand remained weak across regions, weighing on overall market sentiment. The weakness in the downstream segment further dampened demand for sponge iron, as buyers stayed cautious about building inventory at current levels.

Buyers largely adopted a wait-and-watch approach towards procurement, anticipating further price corrections. Purchases were restricted to need-based quantities, and no bulk bookings were reported during the day. BigMint recorded trade volumes of around 7,000 t, largely in line with the previous day, though overall trade momentum softened

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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