- Trade remains need-based despite improved market sentiment
- Prices dip in central, south India, stay stable in eastern market
India’s sponge iron (DRI) prices declined marginally by INR 50-150/tonne (t) d-o-d across regions on 22 January 2026. Buying activity showed a slight improvement compared to the previous day as prices eased. However, overall procurement remained limited, with buyers largely restricting purchases to immediate requirements. Market participants noted that sentiment in the sponge iron market has improved slightly over the past 1-2 days.
Region-wise, prices in the central and southern regions witnessed a slight correction of INR 100-150/t, while the eastern market remained stable. On the raw material front, pellet prices remained stable at INR 9,650/t ex-works. Meanwhile, billet prices fell by INR 50-300/t d-o-d across India.
Daily trade volumes increased to around 13,150 t from approximately 5,800 t in the previous session, reflecting an improvement in buying interest and a gradual recovery in market sentiment in the sponge iron segment.
With a modest price correction in place, prices are expected to stabilise in the near term, which could support a gradual improvement in overall market sentiment.
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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