- South India witnesses sharp price declines
- Bookings largely confirmed at lower offers
Indian sponge iron (DRI) prices exhibited a downtrend on 7 January 2026, reflecting subdued regional demand across key hubs. Overall market sentiment remained weak, with cautious buying behaviour and limited enquiries confining most transactions to lower price levels. Despite persistent selling pressure, producers largely refrained from offering deeper discounts, aiming to protect margins amid compressed conversion spreads and volatile finished steel prices.
Markets in south and central India recorded price corrections in the range of INR 50-500/t, driven by soft demand and subdued movement in the steel segment. Across India, buyer participation remained muted, with mills restricting purchases to just fulfilling urgent requirements. Although central Indian producers reduced offers in an attempt to stimulate trade, buyer response remained limited as most participants awaited clearer direction in terms of billet and rebar price trends.
Daily trade volumes were estimated at around 8,000 t, down from 11,200 t in the previous session, indicating reduced participation from both traders and end-users. While sellers displayed greater flexibility in negotiations, overall demand constraints continued to cap procurement activity.
On the raw material front, pellet prices in Raipur edged up slightly to INR 9,600/t ex-works, supported by steady iron ore prices and a balanced supply-demand scenario.
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