- Sellers hold prices firm despite weak demand
- Weak downstream demand keeps market subdued
Domestic sponge iron prices remained largely stable across most regions on the day, with marginal gains of INR 100/t recorded in the Jharsuguda and Hyderabad markets. In the key Raipur market, prices held steady at INR 24,050/t ex-works. Despite subdued buying interest, sellers largely maintained their offers, supported by elevated raw material costs, which helped limit any significant downside in sponge iron prices.
Market activity continued to be driven by need-based procurement, while bulk bookings remained absent across regions, reflecting cautious buyer sentiment and weak confidence in near-term demand recovery. Demand from the finished steel segment remained subdued, weighing on sponge iron consumption. Muted activity in downstream steel markets and the lack of any meaningful improvement in end-user demand kept overall market sentiment weak.
Total trading activity during the day stood at approximately 9,150 t, compared to around 8,600 t in the previous session. While volumes improved marginally, most deals were concluded at lower price levels, indicating limited participation and continued pressure on the market amid weak trade flows.
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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