- Higher pellet prices, tight central region supply support prices
- Trade slows with buyers having covered immediate needs yesterday
Indian sponge iron prices across key regions increased by INR 100-600/t d-o-d, supported by need-based demand and firm seller sentiment. Moderate trading activity took place today, with the strong momentum seen yesterday fading. While buying activity slowed as many consumers had already covered their immediate requirements yesterday, suppliers maintained higher offers.
Demand from the finished steel segment remained largely need-based, with buyers seeking lower price levels. Healthy enquiries continued across key markets, but deal closures remained limited due to the gap between buyer bids and seller offers. Tight material availability kept prices in the central region firm, while higher regional prices encouraged inter-regional movement of sponge iron, supporting overall market sentiment.
Raw material
Raipur’s pellet prices increased by INR 300/t d-o-d to INR 10,000/t, providing additional cost support to sponge iron producers and strengthening price sentiment. South African RB2 (5,500 NAR) coal remained stable at around $106/t CNF Gangavaram, while domestic non-coking coal prices at Visakhapatnam port held steady at approximately INR 10,400/t.
Trade volume
Trading activity moderated from the previous session as buyers had already secured material yesterday, though need-based procurement continued. BigMint recorded a sponge iron trade volume of around 22,650 t, lower than the previous day’s 36,000 t.
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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