India: Sponge iron market sentiment remains subdued amid weak demand

• Muted demand, election slowdown weigh on sentiment
  
  
• Slow trade activity reported with limited enquiries, deals
  
  

Sponge iron prices declined by INR 50-200/t across regions on 4 May. In the key Raipur market, prices declined by INR 100/t to INR 25,900/t ex-works. Weak participation and subdued trading activity were observed in the market today. Poll results further dampened market sentiment, keeping participants cautious. Buying remained limited to need-based requirements, largely at lower price levels.

Trade activity was slow, with minimal enquiries and negligible deal finalisations, as uncertainty kept participants on the sidelines. The finished steel segment also reflected similar weakness, with dull demand and no major bulk bookings.

Softening raw material prices further weighed on sentiment, prompting buyers to delay procurement, while sellers remained less aggressive. Overall, the market remains under pressure, with weak demand and muted trade activity expected to persist in the near term.

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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