- Only Ramgarh sees price hike amid tight supply
- Ongoing festive season keeps trading subdued
The Indian sponge iron market remained under pressure on 25 September 2025, with prices declining by INR 100-200/t across major regions, except Ramgarh, where offers rose by INR 200/t due to localised supply constraints. Other regions recorded limited price movements, as demand stayed subdued.
Market sentiment stayed negative, with sellers reluctant to trim offers further despite thin buying interest. The continued weakness highlighted a lack of confidence among both buyers and sellers, keeping overall activity range-bound.
Trading remained muted amid the festive season, with around 8,000 t of deals confirmed. Inquiries were sparse, and most buyers refrained from bulk procurement, restricting purchases to immediate needs.
With no signs of recovery in demand and fundamentals in the downstream steel sector still weak, sponge iron prices are expected to remain under pressure in the near term. Market participants continue to adopt a cautious, wait-and-watch approach, limiting momentum for any upward shift.
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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