- Limited liquidity leads to subdued buyer participation
- Higher input costs keep offers firm in select regions
India’s sponge iron market witnessed mixed price movements d-o-d on 18 February 2026, as subdued regional demand patterns dampened trading activity across major regions. Overall sentiment remained cautious amid weak steel movement and subdued downstream offtake.
In eastern India, demand stayed weak. Durgapur recorded subdued buyer participation, with mills restricting procurement strictly to need-based volumes. Weak finished steel movement and limited liquidity continued to weigh on enquiry levels, keeping market momentum restrained.
Ramgarh, however, saw a marginal uptick in prices, supported by relatively firmer raw material costs and sellers’ resistance to lower bids. Participants indicated that elevated input costs, including iron ore and coal, prompted producers to hold offer levels despite muted bookings.
Daily trade volumes were estimated at around 3,600 t, reflecting reduced participation from traders and induction furnace mills. Buyers largely maintained a wait-and-watch stance, as downstream construction demand failed to provide meaningful support.
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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