- Weak demand keeps sponge iron market subdued
- Eastern buying supports sponge iron trade
Sponge iron prices largely remained stable or witnessed a slight increase of INR 50-100/t across most regions on 29 May, while the southern markets of Bellary and Hyderabad recorded declines of INR 100/t and INR 200/t, respectively. In the key Raipur market, prices remained stable at INR 25,100/t ex-works. Weak participation and subdued trading activity continued to prevail in the market today, while buying activity remained restricted to need-based procurement, largely at lower price levels.
Trade activity was slow, with minimal enquiries and very few deal finalisations. The finished steel segment also reflected similar weakness, with dull demand and no major bulk bookings. However, the eastern market witnessed relatively better procurement activity, particularly during the first half of the day, compared to other regions. Despite this, overall market sentiment continued to remain under pressure, with weak demand and subdued trading activity likely to persist in the near term.
Trading volume recorded was around 12,300 t, compared to nearly 7,700 t in the previous session. The increase in volumes was primarily supported by relatively better procurement activity in the eastern markets, particularly Durgapur and Rourkela. However, most deals were still executed in limited quantities, indicating cautious buyer participation and subdued trade flow across regional markets.
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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