India: Sponge iron prices decline in key markets, despite improved market participation

• Buying improves; trade volumes increase
  
  
• Finished steel demand stays need-based
  
  

Sponge iron prices largely remained stable or declined by INR 100-200/t across most regions as on 9th June. In the key Raipur market, sponge iron prices decreased by INR 100/t to INR 24,200/t ex-works.

Market participation showed signs of improvement today, with buying activity picking up compared with previous sessions. Procurement remained largely need-based; however, improved enquiries and better acceptance at prevailing price levels supported transaction volumes. Despite this, buyers continued to remain selective and avoided aggressive stocking.

No significant improvement was observed in the finished steel segment, although market activity remained stable compared with previous sessions. Buying continued to be largely need-based, with participants maintaining cautious procurement strategies and avoiding large-volume bookings. However, steady enquiry levels indicated underlying consumption support, while overall sentiment showed signs of stabilisation despite subdued trading conditions

Trading volumes improved to around 20,000 t, compared with nearly 9,300 t in the previous session, indicating better procurement activity in the market. The increase reflected improved buying participation, although purchases continued to remain largely need-based rather than driven by aggressive restocking.

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