- East and southern region leads the decline today
- Trade volumes stayed low on weaken trade activity
Sponge iron spot prices across India declined by INR 100-400/tonne (t) on 6 January 2025, reflecting weak demand and limited trading activity. The steep correction of INR 300-400/t was recorded in the Rourkela and Hyderabad markets, amid a broadly bearish market tone. In contrast, the Ramgarh market bucked the trend, registering a marginal increase of INR 100/t d-o-d.
Buyer participation remained minimal, as most buyers resisted prevailing offers. Trading activity was largely confined to small, need-based transactions, leaving the market nearly inactive for most of the session. Market sentiment stayed subdued, with participants widely anticipating further price corrections in the near term.
The finished steel segment also witnessed muted activity, as many buyers had already secured material in earlier sessions and chose to remain on the side lines. This downstream weakness further weighed on sponge iron demand across the value chain.
Overall, approximately 11,200 t of sponge iron were booked during the day, underscoring the slow market conditions. Raw material prices remained largely stable, with pellet prices in Raipur assessed at INR 9,500/t ex-works.
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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