- Lower sponge iron prices trigger need-based purchases
- Weak steel demand, market uncertainty dampen demand
India’s sponge iron export market remained under pressure during the assessment week ended 12 June 2026, mirroring the continued weakness in the domestic market. As per BigMint’s weekly assessment, export offers to Nepal declined by $6/t w-o-w to $306/t CPT Raxaul, while offers to Bangladesh fell by $5/t to $311/t CPT Benapole, as sellers reduced prices in an effort to stimulate buying interest amid sluggish demand conditions.
Despite the reduction in offers, buying activity remained limited. Deals for around 7,000 t of sponge iron were concluded for Nepal and Bangladesh during the week, marking a modest decline from the approximately 10,000 t booked in the previous week. Market participants noted that lower prices attracted some requirement-based purchases; however, overall, procurement sentiment remained cautious due to weak downstream steel demand and uncertainty in finished steel consumption across both destinations.
Demand from Nepal remained weak, with buyers continuing to procure only limited quantities based on immediate requirements. Sources indicated that pellet-based sponge iron for Nepal was traded in the range of $280-285/t CPT Raxaul.
Overall, India’s DRI export market continued to face headwinds from subdued regional demand and weak steel market fundamentals. While lower offer levels have helped maintain a certain level of trading activity, the absence of strong buying support has kept export prices under pressure. Market participants expect export offers to remain soft until the recovery in finished steel demand emerges in global markets.
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