- Spot offers up in central, north; down in south, east
- Subdued finished steel demand caps buying interest
India’s sponge iron prices witnessed mixed trends on 21 July 2025 amid moderate transaction volumes. Spot offers rose by INR 50-200/tonne (t) in Raipur, Raigarh, and Mandi Gobindgarh, while Bellary and Durgapur recorded price corrections of INR 50-300/t throughout the day.
Despite moderate buying interest, manufacturers kept offers elevated due to tightness in raw material supply and increased input costs. The recent OMC iron ore auction led to a sharp hike in pellet prices, which rose by INR 150-400/t in Odisha and Chhattisgarh. This prompted a more cautious yet firm pricing approach among producers.
Finished steel offtake remained subdued, limiting procurement enthusiasm. However, supply-side constraints and cost-push pressures are expected to keep sponge iron prices elevated in the near term.
Deals for approximately 11,300 t of sponge iron were concluded across key regions – a slight uptick from the previous trading session’s 9,250 t.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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