- Buyers remain cautious despite lower sponge iron offers
- Need-based finished steel buying weighs on DRI demand
India’s sponge iron (DRI) prices eased by INR 200-500/tonne (t) d-o-d across regions on 20 January 2026 due to slower buying and softer enquiries over the past 2-3 days. While sellers reduced offers to make them more attractive, most buyers continued to adopt a wait-and-watch approach due to uncertainty in the finished steel segment, with procurement largely confined to immediate requirements. Consequently, enquiries for raw materials such as sponge iron and billets stayed restrained.
Region-wise, prices in the central region declined by INR 300-400/t, while the eastern region recorded a drop of INR 300-500/t. Trading activity remained measured across both regions, as cautious sentiment and limited buying interest persisted. Meanwhile, on the raw material front, pellet prices remained stable at INR 9,650/t ex-works.
Daily trade volumes edged up by 4% to around 8,650 t, compared with 8,350 t in the previous session, reflecting only a slight improvement in buying interest.
Notably, with prices having declined today, a gradual improvement in buying activity and trade volumes is expected in the near term.
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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