India: Sponge iron prices firm up; weak steel demand caps market activity

• Sellers lift offers amid improved procurement yesterday
  
  
• Trade volumes decline d-o-d amid cautious market sentiment
  
  

Indian sponge iron prices moved up by INR 100-200/t d-o-d across major regions on 3 June, supported by higher seller offers following improved procurement activity in the previous session. In the key Raipur market, prices increased by INR 200/t to INR 24,650/t ex-works.

However, trading activity remained limited today, as most buyers had already covered immediate requirements yesterday, restricting fresh enquiries in the market. Overall sentiment continued to remain cautious amid subdued finished steel demand.

The finished and semi-finished steel segments also witnessed subdued participation across regions, as buyers largely stayed away from fresh bookings. BigMint recorded sponge iron trade volumes at 9,550 t on 15 May, down from approximately 25,300 t in the previous session, driven by weaker steel procurement. Buying interest remained largely need-based, while cautious sentiment continued to prevail.

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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