- Buyers show tepid demand, eye further price drops
- Liquidity constraints limit large-scale transactions
Indian sponge iron prices declined by INR 50-300/tonne (t) d-o-d on 6 November 2025, as weak demand and limited inquiries continued to pressure the market. The downward movement was observed across all major producing regions, with sellers trimming offers under persistent pressure to conclude deals.
Market sentiment remained subdued, with most participants maintaining a wait-and-watch approach amid uncertainty over near-term price direction. Buyers showed limited interest, expecting further price corrections before committing to substantial purchases. Only sellers offering competitive prices managed to secure small, need-based deals, while bulk bookings remained absent.
Daily sponge iron trade volumes were estimated at around 12,000 t, primarily confined to immediate procurement requirements. Liquidity constraints also restricted large-scale transactions, further dampening overall market participation. Buyers largely resisted prevailing offers, indicating expectations of additional downward adjustments in the coming sessions.
Meanwhile, pellet prices in Raipur remained unchanged at INR 10,000/t DAP, reflecting steady sentiment in the raw material segment. Market participants are closely monitoring liquidity conditions and potential demand recovery to assess the short-term market outlook.
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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