India: Sponge iron prices rebound amid stronger buying activity

• Sponge iron demand strengthens in central, eastern India
  
  
• Robust finished steel demand lends upward momentum
  
  

India's sponge iron prices moved up by INR 100-300/t d-o-d across major regions on 25 May, supported by improved market sentiment and stronger buying activity. In the key Raipur market, prices increased by INR 100/t to INR 24,800/t ex-works.

Market activity improved significantly during the day, with enquiries rising sharply across regions. Demand remained particularly strong in the central and eastern markets, where buyers actively participated in procurement. Strong demand in the finished steel segment resulted in improved procurement activity in the sponge iron market. Healthy buying interest from steelmakers supported raw material procurement, leading to better trade volumes and stronger market momentum.

Trade volumes increased to around 20,000 t against nearly 7,300 t recorded in the previous session. The sharp increase in transactions reflected improved participation and healthy buying sentiment in the market.

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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