- Festive restocking lends partial support to buying activity
- Producers cut offers to sustain liquidity, avoid stock build-up
Sponge iron prices across India declined by INR 50-300/t on 17 October 2025, as weak demand and lower bids continued to weigh on the spot market. Most trades were concluded at lower prices, reflecting cautious procurement behaviour among buyers. Producers were seen reducing spot offers to sustain liquidity and avoid further accumulation of unsold inventory.
Overall, sentiment remained subdued, influenced by persistent weakness in both semi-finished and finished steel segments. However, a slight recovery in trade volume was noted, with daily bookings assessed at around 10,600 t compared to an estimated 9,600 t yesterday. This was supported by a modest pick-up in restocking activity ahead of the festive period and a reduction in spot prices.
Market participants indicated that most buyers have already secured sufficient material to meet near-term requirements, which may limit additional bookings until post-festive demand revives. Meanwhile, pellet prices in Raipur remained stable at INR 10,250/t ($116/t) DAP Raipur.
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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