India: Sponge iron prices show varied trends across regions

• Demand remains need-based
  
  
• Limited enquiries keep market sentiment soft
  
  

India's sponge iron prices showed a mixed trend on 12 March. Prices increased by INR 50-200/t in the central and eastern regions, while the southern market witnessed a decline of INR 100-200/t. Buying activity remained low to moderate, with no significant demand observed at higher price levels. Market participants largely resorted to cautious, need-based procurement during the day.

Demand in both the finished and semi-finished steel segments remained moderate, with no significant improvement in market sentiment despite a slight uptick in prices. Enquiry levels were limited and buying activity stayed largely cautious, reflecting a softer sentiment in the market.

Trade volumes were recorded at around 8,200 t today, almost similar to yesterday's level of approximately 8,950 t. Despite steady transaction levels, participants largely maintained a wait-and-watch approach.

On the cost front, pellet prices remained stable, with Raipur pellets assessed at around INR 11,000/t ex-works.

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