India: Sponge iron prices rise amid improved sentiment, while trade volumes soften

• Buyers remain cautious as higher rates limiting fresh procurement
  
  
• Trade volumes declined by 45% compared to the previous trading session.
  
  

Indias sponge iron prices increased by INR 100-500/t d-o-d across major regions on 26 May, supported by improved sentiment and stronger buying activity witnessed in the previous trading session. In the key Raipur market, sponge iron prices rose by around INR 200/t to approximately INR 25,000/t ex-works. Positive market momentum during the first half of the trading session encouraged sellers to maintain firm offers across regions.

However, despite the price rise, overall market activity remained limited as buyers had already booked sizeable volumes in the previous session. The semi-finished steel segment continued to show relatively weaker demand, restricting fresh procurement at higher price levels. Buyers remained cautious amid elevated offers, while sellers stayed confident due to stronger bookings concluded a day earlier. As the session progressed, slower demand and limited enquiries softened trading momentum, keeping overall working activity restricted in most regions.

In the raw material segment, movement remained sluggish, with raw pellet prices in Raipur declining by INR 50/t DAP, as assessed by BigMint at around INR 9,550/t. Meanwhile, BigMint recorded sponge iron trade volumes at around 12,000 t on 26 May, significantly lower compared to nearly 22,000 t recorded in the previous trading session, indicating softer market participation overall.

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