- Renewed buying results in strong price recovery
- Countrywide trade volumes surge d-o-d
India’s sponge iron market witnessed a strong upward rally on 31 October 2025, with prices increasing by INR 100-700/t (t) day-on-day (d-o-d) across major producing hubs. The Jharsuguda region led the surge with a sharp INR 700/t rise, supported by firm trends in the semi-finished and finished steel segments.
The uptrend was underpinned by renewed market confidence, as improved trading momentum and bullish steel prices encouraged participants to re-enter the market. Active inquiries from steel manufacturers prompted sellers to lift offers further, while strong finished steel performance created a ripple effect across sponge iron markets.
Market sentiment remained buoyant, with central India witnessing notable hikes amid robust buying interest and improved offtake. However, some participants noted that logistical delays and slow lifting of previously booked materials partially capped fresh deal activity.
Trade volumes rose sharply to nearly 32,000 t, up from around 6,000 t in the previous session, reflecting aggressive restocking and higher market participation. Most transactions were concluded swiftly as buyers replenished inventories ahead of potential further price hikes.
Meanwhile, pellet prices in Raipur remained stable at INR 9,900/t DAP, indicating balanced supply-demand fundamentals in the raw material segment.
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%.
Click here for detailed methodology
Leave a Reply