- Market sentiment remains largely bearish
- Lower offers fail to spark buying interest
The Indian sponge iron market extended its bearish momentum, due to limited buying interest despite lower spot offers. Prices corrected by INR 100-150/t across the major production hubs, owing to weak demand, stemming from subdued finished steel trade. However, Chennai and Rourkela experienced a slight uptick due to uncertain trade and supply dynamics.
Market activity remained need-based, as upcoming festive holidays may lead to disruptions in availability in the short run. Deals for approximately 10,500 t were concluded in today’s trading session.
Despite weak demand, many producers from the central region refrained from reducing offers significantly due to elevated iron ore prices, which limited active participation in the spot market. On the other hand, finished steel markets also remained weak, with sparse inquiries and muted procurement, further weighing on sponge iron demand.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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