- Prices correct in east & south; central region remains stable with better buying
- Demand cautious, but trade volumes improve; raw material costs stay supportive
Sponge iron prices witnessed a correction of INR 100-200/t d-o-d across regions on 28 January, with the decline largely concentrated in the eastern and southern markets, while prices in the central region remained mostly stable. Buying activity in the central region was moderate to good, supported by routine restocking, whereas trading in the eastern and southern regions stayed moderate. In these regions, purchases were largely need-based amid ongoing price correction, with limited buying interest observed.
Finished steel enquiries remained subdued, while the semi-finished steel market saw moderate participation. Prices are expected to stay range-bound under the current market scenario. Buying interest on the demand side remained limited amid ongoing price correction, with buyers largely adopting a wait-and-watch approach, even as some regional markets reported slight improvement in activity over the past few sessions.
Trade volumes rose to around 15,800 t today from approximately 12,050 t in the previous session,, indicating improved buying interest. On the cost front, raw material prices remained largely stable, with pellet prices in Raipur assessed at INR 9,650/t ex-works, while iron ore prices held steady, thereby providing cost-side support to DRI producers.
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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