- Spot offers ease further as demand weakens
- Finished steel slowdown weighs on market
India’s sponge iron market witnessed a sharp decline in prices on 29 July 2025, falling by INR 50-300/tonne across key regions. The steepest drop was observed in Raigarh, where prices fell by INR 300/t, due to weak demand and widening bid-offer gaps.
The downturn comes amid a subdued buying environment, with most buyers already well-stocked following prior bookings at favourable rates. As a result, fresh inquiries remained limited, and the market saw minimal deal closures.
Sentiment remained cautious, with transactions largely confined to immediate, need-based procurement. Sellers were compelled to reduce offers in response to tepid demand, while buyers remained defensive, quoting lower prices.
Adding to the pressure, weakness in the finished steel segment-where demand remains lacklustre further limited sponge iron offtake. With both suppliers and buyers holding adequate inventories and overall confidence staying low, no major price recovery is anticipated in the near term unless downstream steel demand improves significantly.
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
Leave a Reply