- Improved trading in last session lifts sentiment
- Semis, finished price hikes support sponge iron
India’s sponge iron market recorded a sharp price surge of INR 150-650/t d-o-d across locations, led by Raipur, where prices spiked by INR 650/t. The rally was supported by improved trade activity in the previous session and strengthening sentiment in semi-finished and finished steel markets.
Market highlights
- Buyer sentiment: The sudden price escalation prompted cautious buyer behaviour, with participants adopting a wait-and-watch stance. This tempered fresh demand, leading to moderate bookings, despite the upbeat sentiment.
- Bookings: Around 15,000 t of sponge iron were booked pan-India today.
- Supportive trends: Both semi-finished and finished steel markets registered strong upward price movement, lending support to sponge iron offers.
While sentiment has turned positive, actual demand is yet to catch up with the price rally. Sustained downstream demand and buyer confidence will be critical to maintaining the current momentum.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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