India: Sponge iron prices slip; eastern buying lifts trade volumes

• Sponge iron prices fall INR 100-400/t on weak demand
• BigMint trade volume rises 50% on eastern region bookings

Domestic sponge iron prices declined by INR 100-400/t day-on-day across regions, weighed down by limited buying interest and sluggish demand, which dampened overall market sentiment. In Raipur, PDRI prices settled at around INR 29,100/t, down by INR 100/t from the previous session. Market participants remained cautious amid the subdued demand environment.

The finished steel segment also weakened, adding further pressure on the overall market. Buying activity remained largely need-based across most regions. The eastern region was the exception, where some buying emerged at lower price levels and buyers booked healthy volumes. Other regions stayed muted, with very low buyer participation.

Despite softer prices, trade activity strengthened on the back of good bookings in the eastern region. BigMint recorded around 10,000 t of trade during the day, roughly 50% higher than the previous day. Going forward, market direction is likely to depend on finished steel demand.

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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