India: Cautious buying sentiment keeps sponge iron market subdued

• Mixed price trend prevails, buyers remain cautious
  
  
• Dull demand weighs on volumes and sentiment
  
  

Indian sponge iron prices showed a mixed trend on 23 February. Prices declined by INR 100-300/t in the central and eastern regions, while the southern market registered an increase of around INR 100-200/t. Buying activity remained low-to-moderate, with limited enquiries observed across markets.

As prices have been continuously correcting, buyers largely maintained a wait-and-watch approach, resulting in cautious and need-based procurement throughout the day.

Demand in the finished and semi-finished steel segments remained steady, leading to dull sentiment in the sponge iron market today. Enquiry levels were limited and buying activity remained largely cautious, reflecting subdued participation across regions. Trade activity stayed moderate with no significant improvement observed during the day.

Trade volumes declined to around 4,500 t today compared to nearly 10,500 t in the previous session, indicating weaker buying activity and reduced market participation. The drop in volumes reflects cautious buyer sentiment amid the ongoing price correction 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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