- Prices show downtrend in Raipur, Hyderabad
- Price hike in northern India triggers buying
Indian sponge iron prices increased by INR 50-200/tonne (t) d-o-d across key locations today. However, prices in Raipur and Hyderabad were slightly down by INR 50-200/t.
PDRI prices were assessed at INR 21,400-26,200/t at the close of trading, while CDRI tags stood at INR 23,900-29,000/t.
The market experienced a notable shift in sentiment today, driven primarily by a price hike in the northern regions. This upward revision in prices provided a positive trigger across other regions, fostering improved buying interest. Although prices remained largely stable during the second half of the trading session, early gains helped sustain an optimistic trend throughout the day.
Transactions of approximately 18,450 t of sponge iron were recorded today, significantly improving from 5,650 t on 27 June. Instead of holding out for potential price corrections, many purchasers chose to secure their requirements at current levels. This proactive buying behaviour further supported the positive undertone in the market, suggesting improved confidence among participants.
Raw material price movements
- PELLEX, BigMint’s bi-weekly domestic pellet (Fe63%) index for Raipur, remained stable at INR 9,150/t ($107/t) DAP Raipur on 27 June compared to the previous assessment on 24 June. Raipur-based pellet producers kept their offers for Fe 62/63% (+/_0.5%) material stable at INR 9,000-9,100/t ($105-106/t) exw.
- The market remains muted with buyers limiting purchases to immediate needs. Despite falling sponge PDRI prices, suppliers are holding offers firm, supported by occasional inquiries and limited deal closures.
Raipur market overview
The Raipur sponge iron market slightly fell by INR 50/t to INR 22,400/t. Buyers remained cautious, hesitant to procure at current prices due to continued pressure in the finished steel segment. No major price fluctuations were seen, though moderate transactions were reported. Procurement stayed largely need-based as weak downstream demand limited aggressive purchases. Overall, market sentiment was cautious, with participants closely observing trends before making further moves.
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%.
Click here for detailed methodology
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