- Strong bookings earlier, higher raw material costs lift prices
- Buyers purchase on need basis amid earlier bookings at lower prices
Sponge iron prices across India increased by INR 200-600/t on 6 April 2026, supported by improved bookings in the previous session and a continued uptrend in raw material costs.
Despite the price uptick, overall market activity remained cautious. Buyers had largely secured material earlier at relatively favourable prices, limiting fresh procurement at elevated offers. As a result, transactions were mostly restricted to need-based purchases, preventing any strong momentum in trade volumes.
Market sentiment remained volatile, with producers maintaining a firm stance on offers amid expectations of further cost escalation. Participants cited rising concerns over potential disruptions in raw material supply and logistics due to ongoing geopolitical tensions, which continued to influence pricing decisions.
However, buyers showed resistance to higher price levels, adopting a wait-and-watch approach amid uncertainty over demand sustainability. This cautious stance kept overall market activity subdued, despite firm pricing trends.
Daily trade volumes were estimated at around 5,100 t, reflecting relatively slower participation from both traders and end-users.
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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