- Sellers hold prices firm despite weak demand
- Muted buying interest drags trade volumes lower
Domestic sponge iron prices largely remained stable across most regions, with marginal corrections of INR 50-150/t observed in select markets amid subdued demand. In contrast, the key Raipur market witnessed a slight increase of INR 50/t to INR 24,150/t ex-works. Sellers attempted to hold prices and prevent further correction despite limited buying interest. However, market activity remained largely need-based, while higher raw material costs continued to support seller offers and limit any significant downside in sponge iron prices.
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 7,950 t, compared to nearly 11,400 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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