- Bid-offer gap widens to INR 200-300/t
- Limited inquiries restrict trading activity
India’s domestic sponge iron market remained under pressure on 2 July 2026, with prices declining by INR 50-200/t d-o-d across most regions. Buying activity remained sluggish throughout the day, with most transactions concluded at the lower end of the prevailing price range.
In the benchmark Raipur market, sponge iron prices declined marginally by INR 50/t d-o-d, with offers reported at around INR 23,900-24,000/t against bids of around INR 23,600-23,700/t, keeping the bid-offer gap at around INR 200-300/t. The wider gap continued to restrict trade negotiations, resulting in limited deal closures. Suppliers remained flexible on pricing to secure bookings amid subdued demand, while overall market sentiment stayed cautious due to weak buying interest and lower trading activity.
Demand from the finished steel segment also remained slow, with buying activity limited to immediate requirements. Sluggish downstream consumption continued to weigh on procurement, resulting in fewer inquiries and lower trade volumes. The absence of large-volume transactions further dampened overall market momentum during the day.
On the raw material front, pellet prices remained largely stable d-o-d at around INR 8,900-9,000/t. In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis declined by $3/t d-o-d to $110/t, and domestic non-coking coal prices at Visakhapatnam port also remained stable d-o-d at approximately INR 10,450/t.
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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