- Prices rise in south India amid moderate restocking
- Buying activity largely confined to lower offers
Indian sponge iron (DRI) prices exhibited mixed trends on 12 November 2025, as regional demand varied across key producing hubs. Market participants pointed to weak sentiment overall, with cautious buying and limited inquiries keeping most trades confined to lower levels. Despite persistent selling pressure, producers were reluctant to extend deeper discounts, aiming to safeguard margins amid squeezed conversion spreads and volatile finished steel prices.
In southern India, sponge iron prices inched up by INR 100-300/tonne (t) amid moderate restocking from nearby secondary mills. Mills in this region continued to maintain steady operations, supported by stable raw material prices and improved liquidity flow compared to northern and eastern counterparts.
In contrast, eastern and central India witnessed a downward correction of INR 50-500/t, reflecting soft demand and muted steel movement. The Raipur, Raigarh, Rourkela, and Durgapur markets witnessed subdued buyer interest, with mills purchasing only on a need basis. Central Indian producers trimmed offers marginally to stimulate trades, but demand remained limited, as most buyers awaited further clarity on billet and rebar trends.
Daily trade volumes were estimated at 13,000 t, falling from 16,000 t in the previous session, suggesting reduced participation from both traders and end-users. While some buyers explored opportunistic purchases at lower prices, uncertainty about future direction restrained bulk deals. Sellers showed greater flexibility, but the market continued to face liquidity constraints and limited procurement from small-scale IF units.
- Pig iron: SAIL-BSL conducted a 6,000-t steel-grade pig iron auction from Bokaro, which was fully booked at an average INR 31,450/t, marking a rise of INR 750/t from the previous auction. The strong response highlighted stable foundry demand and tightened spot availability.
- Pellets: Prices in Raipur remained unchanged at INR 9,600/t exw-Raipur, supported by steady iron ore costs and balanced supply-demand conditions among mid-sized pellet producers.
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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