India: Sponge iron market witnesses sharp slowdown in trading activity

• Weak demand keeps sponge iron market subdued
  
  
• Trade volumes drop sharply on d-o-d
  
  

India's sponge iron prices declined by INR 50-250/t d-o-d across major regions on 4 June amid weak demand and subdued market sentiment. In the key Raipur market, prices fell by INR 200/t to INR 24,450/t ex-works. Trading activity remained sluggish, with buyers limiting purchases to immediate requirements and continuing to place bids at lower levels. Weak participation across the market kept overall booking volumes under pressure throughout the day.

Trade activity was slow, with minimal enquiries and very few deal finalisation. 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.

Trading activity witnessed a sharp slowdown today, with total traded volumes declining to around 4,500 t, compared to nearly 9,550 t in the previous session. Most deals were executed in limited quantities, indicating cautious buyer participation and subdued trade flow across regional markets.

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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