- Trade volumes surge by 70% d-o-d
- GST reforms drive bullish outlook
India’s sponge iron prices witnessed a sharp rise of INR 200-500/tonne (t) d-o-d across major regions, led by Raigarh. The surge was supported by improved spot inquiries and positive sentiment following GST-related developments, which boosted buying interest.
Market activity
- Buyer confidence: Stronger participation reflected a shift away from the earlier “wait-and-watch” stance, with mills and traders actively booking materials today.
- Regional trend: Raigarh led the uptrend, while other hubs also experienced higher price increases amid improved trade activity.
Trade volumes expanded significantly, with total bookings at 28,150 t, marking an increase of nearly 68% d-o-d. The improved market participation reflects growing confidence among both buyers and sellers, hinting at a potential short-term bullish outlook. However, the sustainability of this momentum will depend on continued policy clarity around GST reforms and steady downstream demand.
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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