- Trade volumes fall as buyers adopt cautious stance
- Pellet prices remain steady amid stable iron ore
India’s sponge iron (DRI) prices edged up by INR 100-300/tonne (t) d-o-d across major regions on 16 January 2026, supported by slightly firmer producer offers. However, market sentiment remained subdued, with limited enquiries and cautious buying observed throughout the day amid sluggish finished steel demand. Buyers largely restricted purchases to immediate needs, resulting in weak overall participation.
Region-wise, prices in the central markets were mostly stable, while the eastern region recorded a mild increase of INR 100-300/t. However, trading activity remained muted as buyers adopted a wait-and-watch stance amid ongoing uncertainty. Consequently, trade volumes were limited.
Daily trade volumes declined further, by 23% d-o-d, to around 5,550 t, compared with 7,250 t in the previous session, reflecting reduced participation from both traders and end-users. On the raw material front, pellet prices remained steady at INR 9,650/t ex-works, supported by stable iron ore prices and a balanced supply-demand scenario.
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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