- Stronger finished steel demand lifts market sentiment
- Buyers return to market, anticipating further price hikes
Indian sponge iron prices moved higher by INR 300-700/t d-o-d across key markets today following improved buying interest. Stronger finished steel demand in major consuming regions supported the semi-finished steel market, while higher raw material costs continued to squeeze producer margins. The price increase provided some relief to sponge iron manufacturers. BigMint assessed Raipur sponge iron prices at around INR 25,700/t, up by approximately INR 400/t from the previous session.
The sharpest increase was recorded in Rourkela, where prices rose by around INR 700/t amid stronger regional demand and improved market enquiries. Buyers who had remained on the sidelines earlier returned to the market, anticipating further price firming, resulting in improved trading sentiment across the eastern and central regions.
Trade activity strengthened significantly during the session. According to BigMint, around 23,000 t of sponge iron were traded, up by nearly 8,000 t compared to the previous trading session, indicating higher buyer participation and improved market confidence.
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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