India: Sponge iron market under pressure amid weak demand

• Sponge iron prices slip on weak demand
  
  
• Trade activity remains subdued
  
  

India's sponge iron prices declined by INR 50-300/t d-o-d across regions on 13 May, amid sustained weak demand conditions. Sellers attempted to revive enquiries by adjusting offers; however, buyers remained hesitant and resistant to current levels, keeping overall sentiment subdued.

Purchasing activity continued to be need-based, with participants limiting procurement to immediate requirements. Enquiries remained restricted, reflecting cautious market behaviour and a lack of fresh triggers. Trade activity was largely muted, with limited transactions concluded during the day.

The finished and semi-finished steel segments also witnessed subdued participation, with overall buying interest remaining weak across markets.

BigMint assessed trade volumes at around 7,300 tonnes, compared to approximately 8,100tonnes in the previous session.

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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