- Softer prices support buying activity
- Moderate pickup in trade activity observed
Domestic sponge iron prices declined by INR 50-600/t d-o-d across regions on 15 April, extending the ongoing correction in the market. The easing of prices supported a pickup in buying activity, with participation improving to a moderate level compared to the subdued trend witnessed in recent sessions.
Enquiry levels improved as buyers re-entered the market at lower rates, leading to some recovery in trade volumes. However, procurement largely remained need-based, with cautious sentiment still prevailing. That said, the recent correction has begun to draw buyers back, thereby restoring overall market sentiment.
Prices in both the finished and semi-finished steel segments declined today, in line with the ongoing market correction. However, buying activity improved compared to previous sessions, supported by softer price levels which encouraged better participation. Enquiry levels increased, with some trades concluded at lower rates, indicating a gradual improvement in demand. Despite this, procurement remained largely need-based, with cautious sentiment still prevailing.
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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