- GST reforms, active bookings boost sentiment
- Trade volumes across markets surge d-o-d
India’s sponge iron market recorded an upward movement on 22 September 2025, with prices rising by INR 50-300/tonne (t) day-on-day. Raipur led the rally with the steepest gain of INR 300/t, while Bellary stood out as the only major market to register a decline of INR 100/t. The overall surge was largely driven by positive cues from steel markets in the neighbouring states which supported sponge iron prices after a relatively dull previous session.
An important factor contributing to today’s market optimism was the implementation of the updated GST reforms, which officially came into effect. These changes are expected to streamline trade procedures, reduce compliance hurdles, and enhance ease of doing business. This, coupled with improving steel fundamentals, helped revive buyer sentiment, resulting in a noticeable pickup in market activity and price momentum.
Buyers and sellers alike shifted from from their earlier “wait-and-watch” approach, with mills and traders actively participating in bookings. The improved sentiment signals renewed confidence in price recovery and hints at a positive outlook for the sponge iron market.
Approximately 21,300 t of sponge iron were booked today across major regions, reflecting a strong jump in trade volume. This surge in transactions underscores the market’s growing confidence and reinforces expectations of prices firming further in the near term.
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%.
Click here for detailed methodology
Leave a Reply