- Sellers reduce prices to spur demand
- Limited deals concluded despite lower tags
The Indian sponge iron market extended its decline on 20 August 2025, with spot prices slipping by INR 100-300/t across key producing hubs. The central region saw the steepest corrections, pressured by weak demand and thin trading activity throughout the day.
Demand remained scarce, with buyer inquiries limited across regions, sellers reduce offers in select clusters to attract bookings, but lower prices failed to revive momentum. Deals concluded were largely need-based at the lowest available tags, as buyers avoided stock-building amid uncertainty.
The semi-finished and finished steel markets mirrored significant weakness, with both segments maintaining a subdued tone and reinforcing overall bearish sentiment. The market remains under pressure from lack of downstream demand support, with participants continuing a cautious wait-and-watch approach.
Approx. 12,100 t of sponge iron were booked today, underscoring the weak participation despite softer prices.
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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