- Demand stays weak amid buyer resistance
- Price uptick fails to lift trading activity
Sponge iron (DRI) prices in India edged up by INR 100-500/t on a d-o-d basis across regions on 19 January 2026, driven by firmer producer offers. Despite the price uptick, overall market sentiment remained subdued, as buyers showed little interest in accepting higher prices. Enquiries were slow through the day, with most participants refraining from fresh purchases and limiting buying to only essential or immediate requirements.
Region-wise, the central region, prices increased by INR 100–400/t, while the eastern region saw gains of INR 300-500/t. Even with these region-wide price hikes, trading activity remained muted, as buyers adopted a cautious, wait-and-watch approach.
As a result of weak buying interest, daily trade volumes dropped sharply to around 8,350 t, compared with 18,700 t in the previous session. The significant decline in volumes reflected the ongoing disconnect between rising prices and sluggish market demand. On the raw material front, pellet prices remained stable 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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