India: Sponge iron prices witness mixed trends even as bookings improve - 18 Aug

• Sharp rise in daily bookings
  
  
• Spot offers increase across markets
  
  

Sponge iron prices across India witnessed a notable uptick in buying activity d-o-d, with spot offers increasing by INR 50-150/t across regions. The upward movement was driven by improved buying interest, particularly in central India. However, Rourkela and Durgapur recorded a marginal decline of INR 50-100/t, while the southern region remained largely inactive due to weak demand.

Early trade hours saw positive sentiment, supported by short-term restocking. This led to aggressive buying from traders and manufacturers looking to replenish inventory. Central India, in particular, showed strong participation, while other regions displayed mixed responses, ranging from moderate to subdued activity.

A sharp rise in daily bookings to 17,000 t, significantly above the recent 3,000-tonne average, highlighted the post-holiday demand recovery. Suppliers moved swiftly to secure material amid expectations of further price firming across both finished and semi-finished steel segments.

Market sentiment remains cautiously optimistic. Participants are now watching raw material price trends and regional demand-supply movements for further cues.

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%.