- Positive sentiment boosted sellers’ offers
- Trade Volume rose by 37%
Sponge iron prices across major Indian markets moved higher by INR 300-900/t, supported by late-evening demand in the previous session, improved market sentiment, and firmer offers from key producers. The sharpest gains were seen in the central region, particularly Raipur and Raigarh, where prices increased by INR 700-900/t. Strong buying interest recorded earlier helped sustain upward momentum and encouraged sellers to reassess their price levels.
Market sentiment
Market sentiment remained cautiously positive. Participants reported that price strength was driven by spillover support from nearby markets and active trading in the earlier session. Buoyed by healthy sales and improved operational conditions, sellers raised their offers to test higher levels. However, buying interest was moderate, as several consumers had already covered their requirements previously and showed resistance to elevated prices. While market enquiries increased, many failed to translate into actual trades.
Trade Activity
Trade activity improved, with total sponge iron transactions estimated at around 18,500 t, compared with 13,500 t in the previous session, indicating higher market participation. On the cost side, raw material prices remained stable, with pellet prices in Raipur assessed at INR 9,600/t ex-works and iron ore prices holding firm, providing continued cost support to DRI producers.
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
Leave a Reply