- Higher raw material costs boost buying interest
- Several central Indian producers secure bulk orders
Indian sponge iron prices rose by around INR 100-500/t d-o-d across major regions. The improvement was driven by firmer raw material costs, increased buyer enquiries, and an overall positive market sentiment. Strong demand from both traders and steelmakers encouraged producers to raise offers, while higher booking activity reflected growing confidence in near-term market fundamentals.
Central India remained the strongest performer, with several sponge iron producers already carrying full order books and continuing to secure fresh bulk deals during the day. The sustained buying interest suggests that consumers are actively covering their monsoon requirements. In the eastern region, producers supplied material to central India at competitive prices, resulting in healthy booking activity and supporting demand across both markets.
Buying momentum remained strong in both the semi-finished and finished steel segments, providing additional support to the sponge iron market. Improved downstream demand strengthened purchasing activity and encouraged mills to maintain steady production schedules.
Trade activity was also robust, with approximately 36,000 t of sponge iron traded during the day, jumping by around 200% d-o-d. The higher transaction volume highlighted strong buyer participation and healthy market liquidity. Overall, the sponge iron market index remained slightly positive, supported by firm demand, higher raw material costs, and active bulk bookings across key producing regions.
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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