- Buyers remain cautious at higher price levels amid uncertainty
- Weak finished steel demand slows overall market momentum
The domestic sponge iron market witnessed a slightly upward movement on 8 September, 2026, with prices rising by around INR 50-500/t across key regions, led mainly by the Chennai market. In Raipur, BigMint’s PDRI assessment settled at around INR 28,650/t, up by INR 50/t from the previous day. The increase was largely supported by late-evening buying activity in the previous session, which provided a boost to market sentiment.
Market participants reported that sellers were raising offers following the good demand witnessed during the previous evening, particularly in the central region. However, buying activity in finished steel remained slow today, with no major transactions reported. Sponge iron demand was also largely need-based, with buyers booking limited quantities at prevailing levels.
Despite the recent price gains, market participants remain cautious about the sustainability of higher prices. The slow pace of finished steel demand has encouraged buyers to adopt a wait-and-watch approach, avoiding aggressive stocking.
BigMint recorded sponge iron trades of around 10,000 t, down by approximately 3,000 t from the previous day, indicating softer trading momentum at elevated price levels.
Rationale
Prices have been derived based on transactions, offers, bids, and indicative price data sets. Transactions are considered as T1 and given aweightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.
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