- Market volatility keeps prices at elevated levels
- Procurement largely need-based at higher offers
Sponge iron prices across India increased by INR 100-400/t on 6 March 2026, supported by improved bookings in the previous session and continued uptrend in raw material costs. The south Indian market recorded the sharpest increase of around INR 400/t d-o-d, aided by better buying interest from billet manufacturers.
Despite the price uptick, overall market activity remained cautious. Many buyers had already secured material earlier at relatively favourable levels, resulting in limited fresh procurement at elevated offers. Transactions were largely restricted to immediate requirements, preventing any strong upward momentum in trade.
Market participants said that producers maintained a bullish stance, anticipating further cost pressure amid escalating geopolitical tensions that may disrupt raw material supply and logistics. However, buyers largely resisted higher offers, keeping overall market liquidity restrained.
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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