- Muted buying limits market momentum
- Limited enquiries weigh on trade volumes
Indian sponge iron prices increased by INR 50-200/t across regions on 26 February. Despite the price rise, buying activity remained muted, with limited enquiries reported across markets. As prices have been correcting continuously in recent sessions, buyers largely maintained a wait-and-watch approach, leading to cautious and need-based procurement.
Demand from the finished and semi-finished steel segments remained steady, with slight improvement observed in some markets. This supported the marginal price increase and limited the scope for further downside. However, overall trade activity remained moderate without any significant improvement during the day.
Trade volumes were recorded at around 5,650 t, compared to nearly 6,200 t in the previous session, indicating weaker buying interest and reduced market participation. The decline in volumes reflects cautious buyer sentiment amid ongoing price fluctuations and limited enquiry levels.
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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