- Spot offers rise on positive sentiments
- Demand at higher offers moderate d-o-d
India’s sponge iron market witnessed a positive movement in prices today, primarily supported by firm raw material prices, particularly of coal and iron ore. Spot offers increased by INR 100-500/t across key regions, with Rourkela (CDRI) leading the charge, rising by INR 500/t d-o-d.
The rally was largely seller-driven, with producers attempting to pass on increased input costs to buyers. However, market fundamentals remain subdued, as demand from end-users failed to keep pace with rising prices. Most buyers restricted purchases to need-based procurement, showing resistance to higher offers.
Trade volumes declined sharply to approximately 16,200 t, down from 26,400 t recorded on 1 August. This drop underscores the disconnect between rising offers and actual market demand from end-users.
In the finished steel segment, sentiment mirrored sponge iron, with limited buying activity and cautious outlook prevailing.
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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