India: Sponge iron markets show mixed movement; weak buying weighs on trade
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- Mixed price trends emerge amid sluggish demand
- Trade volumes plunge; buying remains cautious
Domestic sponge iron prices witnessed a mixed trend across regions on 16 April, with declines of INR 100-300/t in some markets, while a few regions recorded marginal gains of INR 100-200/t. However, overall market activity remained subdued, with limited buying interest and transactions largely confined to need-based requirements. Trade volumes stayed thin, as participants refrained from aggressive bookings amid a cautious market outlook.
Similarly, buying activity in both the finished and semi-finished steel segments remained sluggish, with minimal participation and with only a few deals concluded. Buyers largely stayed on the side lines, restricting procurement to immediate needs. The overall sentiment remained cautious, resulting in muted trading activity across segments.
The recorded trade volume stood at around 4,200 t today, compared to approximately 16,400 t in the previous session, indicating a sharp decline in procurement. The significant drop in volumes reflects subdued buying interest, as market participants remained cautious and limited their purchases amid weak demand.
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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