India: Sponge iron gains on higher offers, demand still need-based

• Sponge iron prices rise on firmer offers
  
  
• Trade volumes decline amid cautious buying
  
  

India's sponge iron prices increased by INR 100-300/t d-o-d across major regions on 10 June, supported by higher seller offers following improved procurement activity in the previous session. However, trading activity remained limited today, as most buyers had already covered immediate requirements yesterday, restricting fresh enquiries in the market. Overall sentiment continued to remain cautious amid subdued finished steel demand.

The finished and semi-finished steel segments also witnessed subdued participation across regions, as buyers largely stayed away from fresh bookings.

BigMint recorded sponge iron trade volumes at 12,100t, down from approximately 21,200 t in the previous session, reflecting weaker procurement activity in the market today. Buying interest remained largely need-based, while cautious sentiment continued to prevail.

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%.

Click here for detailed methodology