- Sponge iron prices decline on weak demand
- Trade activity remains subdued across regions
India’s sponge iron prices declined by INR 150-450/t d-o-d across major regions on weak demand conditions and continued oversupply pressure. Sellers further reduced offering prices to stimulate enquiries; however, buying activity remained sluggish, keeping overall market sentiment subdued.
Market participants largely remained in a wait-and-watch mode amid expectations of further price corrections. Procurement activity was mainly need-based, while bulk bookings continued to remain absent across regions, reflecting cautious buyer sentiment and limited confidence in near-term demand recovery.
Demand from the finished steel segment also remained weak, adversely impacting sponge iron consumption. Subdued activity in downstream markets continued to exert pressure on sponge prices, with no significant improvement observed in finished steel demand fundamentals.
Overall trading activity remained low during the day, with total trade volumes recorded at around 7,600 t, compared to nearly 9,750 t in the previous session. Most transactions were concluded in smaller quantities, indicating limited market participation and continued weak trade flow across regions.
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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