- Weak domestic steel demand keeps pressure on prices
- Buyers expect further corrections, trade volumes drop
The domestic sponge iron market showed a downward trend today, with prices falling by around INR 100-1,200/t day-on-day. The decline reflects bearish sentiment and poor buying participation across regions, with the eastern market recording the steepest fall. BigMint’s benchmark Raipur PDRI prices settled at around INR 27,750/t ex-Raipur, down INR 350/t from the previous day.
Overall market conditions remained weak. Sluggish finished steel demand and thin buyer participation pushed sellers to lower their offers, yet buyers stayed reluctant to accept even the revised levels. Finished steel prices also dropped by INR 200-700/t, adding further pressure on the sponge iron segment.
Deals were largely concluded at discounts to offered prices, as buyers anticipated further corrections. Some transactions were reported only at lower price levels, indicating that buying interest emerged mainly on dips.
Trade momentum stayed subdued throughout the day. BigMint recorded trades of around 5,000 t, roughly 1,000 t lower than the previous session, reflecting softening market activity across the region. Market participants expect cautious sentiment to persist in the near term unless finished steel demand shows signs of recovery.
Rationale
Prices have been derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered as T1 and given aweightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.
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