India: Sponge iron prices rise across key markets; trade volumes improve

• Central, eastern markets record stronger buying activity
  
  
• Chennai bucks trend amid weak demand, prices drop INR 200/t
  
  

India's sponge iron prices increased by INR 100-200/t d-o-d across major regions on 18 June, supported by improved market sentiment and moderate buying activity. In the key Raipur market, prices rose by INR 150/t to INR 24,200/t ex-works. However, the southern market of Chennai bucked the trend, with prices declining by INR 200/t amid weaker regional demand.

Market activity improved during the day, with enquiry levels witnessing an uptick across most regions. Buying interest remained relatively stronger in the central and eastern markets, aided by firmer sentiment in the finished steel segment. Despite the improvement, procurement activity continued to be largely need-based as buyers maintained a cautious approach amid prevailing market uncertainties.

Trade volumes increased to around 14,050 t, compared with nearly 9,150 t recorded in the previous session. The higher transaction volumes indicate improved procurement activity and a gradual recovery in market participation.

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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