- Need-based buying dominates amid market uncertainty
- Sluggish semis, finished steel segments weigh on prices
Indian sponge iron prices dropped by INR 50-400/tonne (t) d-o-d across major regions on 7 October 2025, as weak downstream demand and subdued buying interest continued to weigh on sentiment. Most transactions were restricted to need-based procurement, with buyers preferring low-end deals amid uncertainty over near-term price direction.
Limited participation amid bearish sentiment
Procurement activity remained confined to immediate requirements, as participants refrained from building inventories in anticipation of further corrections. The bearish undertone was reinforced by sluggish movement in both semi-finished and finished steel segments, which kept overall market sentiment cautious.
Daily trade volumes were assessed at around 14,300 t, reflecting muted participation across key producing regions. While regional price movements stayed relatively uniform, sellers displayed growing willingness to offload material at competitive rates, even as buyers largely adopted a wait-and-watch approach.
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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