- Sponge iron market under pressure
- Muted trading activity persists across markets
India’s sponge iron prices declined sharply by INR 200-600/t across major regions on 22 May amid persistently weak market sentiment and sluggish trading activity, while the southern region largely remained stable. The sharpest decline was observed in the Mandi Gobindgarh CDRI market, where prices fell by INR 600/t at INR 30300 . Weak participation and subdued trade volumes continued to prevail in the market, while buying activity remained limited to need-based procurement, largely at lower price levels.
The finished steel segment continued to mirror the subdued market trend, with weak demand conditions and absence of major bulk bookings keeping overall trade activity muted. Declining raw material prices further dampened market sentiment, leading buyers to defer purchases in anticipation of additional corrections, while sellers adopted a cautious approach in the market.
Trading activity continued at lower levels today, with total traded volumes reported at around 5,500 t, compared to nearly 6,700 t in the previous session. Most transactions were concluded in limited quantities, reflecting cautious buyer participation and subdued trade flow across regional markets.
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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