- Strong confidence prompts sellers to raise offers
- Trade volumes remain limited, falling 16% d-o-d
Sponge iron prices across major Indian markets increased by INR 100-700/tonne (t) d-o-d on 2 January 2026, supported by improved market sentiment and firmer offers from key producers. Ramgarh witnessed the sharpest rise, with prices jumping INR 700/t d-o-d, reflecting strong confidence among sellers and aggressive price revisions. Positive sentiment in the broader steel market encouraged producers to maintain higher offers despite cautious buying behaviour.
Enquiries in the finished steel segment remained strong, while the semi-finished steel market saw moderately strong interest. However, due to higher offers, buyers restricted themselves from bulk purchases. Sellers, on the other hand, continued to raise prices, supported by the positive outlook in the steel market, which helped sustain overall price levels.
Trade volumes declined slightly by 6% d-o-d to around 16,000 t, compared with approximately 17,000 t in the previous session, indicating some softening in buying momentum. Despite this, market sentiment remained firm. Raw material prices were largely stable, with pellet prices in Raipur assessed at INR 9,550/t ex-works and iron ore prices holding steady, providing cost-side support to DRI producers.
Additionally, NMDC Nagarnar’s pig iron auction recorded a sharp increase of INR 4,600/t, with around 7,000 t booked at an average price of INR 36,000/t ex-works. The strong auction outcome further reinforced bullish sentiment across the sponge iron and steel markets.
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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