- Sponge iron prices rise on improved sentiment
- Buying activity improves; procurement stays cautious
Indian sponge iron prices moved up by INR 100-300/t d-o-d across major regions on 27 May, supported by improved market sentiment and good buying activity. In the key Raipur market, prices increased by INR 250/t to INR 25,250/t ex-works.
Market activity improved during the day, with enquiry levels rising across regions. Buying interest remained relatively better in the central and eastern markets, supported by improved sentiment in the finished steel segment. Steelmakers were seen actively procuring raw materials, resulting in better trade volumes in the sponge iron market. However, procurement activity largely remained need-based, as buyers continued to maintain a cautious stance amid prevailing market uncertainties.
Trade volumes were recorded at around 9,800 t against nearly 11,400 t in the previous session. Despite the marginal decline in volumes, market activity remained healthy, supported by improved participation and steady buying interest 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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