India: Sponge iron prices under pressure; buyers remain cautious

• Sponge iron prices fall on weak demand
  
  
• Cautious buying keeps trade volumes limited
  
  

Domestic sponge iron prices declined by INR 100-700/t across regions on 20 April, reflecting continued pressure on the market. Buying activity remained low to moderate, with participants largely restricting purchases to immediate requirements. Trade volumes stayed limited, as transactions were primarily need-based amid cautious market sentiment.

Weak demand in the finished steel segment remained the key factor behind the continued decline in sponge iron prices, exerting sustained pressure on the market. Buying activity across both finished and semi-finished steel stayed sluggish, with only a few deals concluded. Buyers largely remained on the side lines, restricting procurement to immediate needs, which kept overall market sentiment cautious and trading activity subdued.

The recorded trade volume today stood at around 7,900 t compared to approximately 7,600 t in the previous session, indicating a marginal increase. Despite the slight rise in volumes, overall buying interest remained cautious, with market participants largely limiting their purchases to need-based requirements amid prevailing weak demand.

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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