- Eastern India sees sharp drop of INR 250/t d-o-d
- Sellers reduce offers, seeking uptick in demand
The Indian sponge iron market continued to witness bearish momentum, extending the subdued sentiment seen in the past few months. Prices corrected by INR 50-250/t d-o-d across major production hubs, with the sharpest declines recorded in Raigarh and Ramgarh, where offers slipped by INR 250/t amid weak demand and poor buyer sentiment.
Market highlights
- Rourkela stood out as the only exception to the downtrend, with CDRI prices gaining INR 200/t d-o-d, supported by selective buying from nearby mills.
- In other regions, sellers faced challenges in sustaining offers as buyer interest remained muted. Some recovery in demand was observed, though largely by mills that offered discounts through price cuts.
- Southern India remained stagnant, with no significant bookings observed, highlighting persistent demand weakness in the zone.
Despite weak demand, many producers refrained from reducing offers significantly due to elevated pellet costs, which limited active participation in the spot market. Selective price corrections, however, did enable deal closures of around 13,400 t. Finished and semi-finished steel markets also remained sluggish, with sparse inquiries and muted procurement, further weighing on sponge iron demand.
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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