- Market sentiment stays mildly positive, caution prevails
- Finished steel prices increased by INR 100-600/t
India’s sponge iron market recorded modest price increases of between INR 100-400/t across most major regions on 27 November, while Rourkela CDRI prices fell by INR 100/t, as buyers turned cautious in response to higher offers being quoted by sellers. Sellers raised their offers following the recovery in semi-finished steel prices and Influence from the neighbouring market, but overall market sentiment stayed cautious due to elevated price levels.
Overall demand in the market remained weak, as buyers restricted themselves to need-based purchasing only, preferring to avoid procurement at elevated levels, resulting in reduced deal activity.
Market Dyanamics
- Market Sentiment: During the first half of the trading session, market momentum was healthy with good enquiry flow. However, as higher offers dominated the market, buying interest weakened toward the evening. The second half of the session saw limited enquiries and buyers becoming increasingly cautious.
- Trade Activity: Trade volumes dropped sharply, with total transactions estimated at around 4,000 t, significantly lower than the 12,000 t recorded in the previous session. This decline reflects buyers’ reluctance to commit at higher prices amid uncertain near-term sentiment and market hesitation.
- Raw Material: In the raw material segment, pellet prices in Raipur remained steady at INR 9,550/t ex-works, indicating balanced supply–demand conditions. Despite reduced sponge iron bookings, pellet availability appeared stable, supporting overall equilibrium in the raw material 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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