- Recent SECL, ECL coal auctions witness higher prices
- Scrap shortage in western India swings demand in favour of DRI
India’s sponge iron prices recorded a strong increase of INR 700-1,400/t across regions on 30 March 2026, reflecting firm market momentum. Despite the sharp rise, the market maintained stability, with buyers adopting a disciplined and need-based procurement approach amid elevated price levels.
The positive price movement was largely supported by higher coal procurement costs, driven by firm bidding in ongoing auctions conducted by South Eastern Coalfields Limited and Eastern Coalfields Limited. Additionally, scrap shortage in the western regions redirected demand towards sponge iron, further strengthening market fundamentals and supporting the uptrend.
In the finished and semi-finished steel segments, prices also moved up sharply, backed by increased raw material costs. With adequate buying activity, the market reflected steady demand fundamentals, with participants actively aligning procurement with price trends.
Trade volumes also showed a healthy improvement, increasing to around 11,700 t from approximately 5,800 t 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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