- Finished steel prices strengthen, provide support to market
- Buying activity remains moderate, buyers show caution
The domestic sponge iron market witnessed an upward movement today, with prices rising by around INR 50-500/t across major regions. Durgapur recorded a sharp increase of nearly INR 500/t, while BigMint’s Raipur PDRI prices settled at around INR 25,950/t exw Raipur, up by INR 250/t. The eastern region saw comparatively stronger gains, mainly because prices there were relatively lower than in other regions, supporting a catch-up movement.
The rise was also supported by margin pressure among sponge iron producers, prompting sellers to increase their offers. Additionally, the positive momentum witnessed in the previous session boosted seller confidence and encouraged firmer price levels. However, the overall market movement remained moderate today, with no significant improvement in actual demand.
Enquiries remained fairly good, while trading activity was seen at a moderate and largely need-based level. Buyers had already secured material during the previous session, limiting participation today. BigMint assessed total trade activity at around 13,000 tonnes, down by approximately 5,000 tonnes from the previous day, indicating softer trading momentum. Overall, the market remains firm, but buyers are cautious and largely purchasing according to immediate requirements.
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%.
Click here for detailed methodology
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