India: Sponge iron prices extend decline amid weak demand; trade volumes fall

• Sponge iron extends downward trend
  
  
• Trade volumes decline d-o-d
  
  

Domestic sponge iron prices declined by INR 100-350/t d-o-d across major markets on continued demand weakness and subdued buying interest. In the key Raipur market, prices fell by INR 200/t to INR 23,900/t ex-works. Sellers reduced offers to stimulate enquiries and secure bookings; however, buyer participation remained largely restricted to immediate requirements, keeping market sentiment under pressure.

Procurement activity across regions remained predominantly need-based, with the absence of bulk transactions reflecting cautious purchasing strategies and limited confidence in near-term demand recovery.

Weak offtake from the finished steel segment continued to weigh on sponge iron consumption. Muted downstream market activity and the lack of any significant improvement in end-user demand exerted further pressure on prices during the day.

Overall sponge iron trade volumes stood at approximately 10,300 t, down from around 12,750 t recorded in the previous session. Most deals were concluded at discounted levels, highlighting subdued market participation and persistent weakness in trade sentiment across key 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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