- Spot offers ease INR 100-500/t amid widening bid-offer gaps
- Finished steel slowdown continues to weigh on demand
India’s sponge iron market extended its downtrend on 24 February 2026, with prices declining by INR 100-500/t day-on-day across major producing regions. The sharpest correction was recorded in Raigarh, where prices dropped by INR 500/t, amid limited bookings at lower offers and widening bid-offer spreads.
The downturn reflects persistent weakness in finished steel demand ahead of upcoming festive holidays, which has dampened procurement activity. Buyers remained cautious, limiting purchases to immediate requirements, while sellers were compelled to trim offers further to stimulate enquiries.
Market participants indicated that despite consecutive corrections, confidence remains fragile. A Raipur-based induction furnace operator said, “Finished steel movement is slow, and without visible demand recovery, sponge iron consumption will stay under pressure.”
Adding to the bearish tone, weakness in rebar and wire rod offtake continued to restrict sponge iron demand across consuming regions. Both suppliers and buyers were reported to be holding adequate inventories, further reducing urgency in spot procurement. Trade volumes reported around 9,000 tonnes, compared with 4,500 tonnes in the previous session.
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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