- Price correction deepens, but enquiries pick up
- Demand and volumes stay steady yet cautious
India’s sponge iron prices declined by INR 100-500/t across regions on 25 March, with Raigarh recording the sharpest correction of around INR 500/t. Buying activity remained low to moderate during the day, with only limited transactions taking place. However, some improvement in enquiries was observed as the recent price correction attracted interest from buyers.
Despite this, overall participation continued to remain cautious, with most buyers preferring need-based procurement. The decline in prices has provided slight support to market activity, but sentiment is still not fully firm, and participants are closely monitoring further price movements before taking larger positions.
Demand from both the finished and semi-finished steel segments remained moderate, with buying activity staying limited due to the ongoing price correction in the market. Participants continued to adopt a cautious approach, resulting in largely need-based procurement rather than aggressive bulk buying, which kept overall market sentiment restrained.
Trade volumes remained largely stable compared to the previous session, with transactions recorded at around 7,300 t against approximately 7,400 t earlier. The marginal variation indicates steady but subdued market activity, with buying interest continuing to remain cautious and largely aligned with immediate requirements.
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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