- Festive season slows down market activity across regions
- Sellers in central region offer heavy discounts amid selling pressure
Indian sponge iron prices softened by around INR 100-700/t d-o-d across regions on 12 October 2026. In Raipur, pellet-based direct reduced iron (P-DRI) prices settled at around INR 28,300/t, down INR 450/t d-o-d. Market sentiment remained weak due to sluggish demand, while limited offtake of finished steel further slowed momentum.
The ongoing festive season has also weighed on overall activity, keeping buyers cautious. With prices trending lower day after day, buyers expect further corrections and are holding back on fresh purchases. Under mounting selling pressure, sellers in the central region offered heavy discounts to attract buyers and clear inventory.
Most buyers stayed in wait-and-watch mode, and only need-based demand was seen across the region. Trade volume was recorded at around 6,000 t, reflecting limited market movement. Market participants expect prices to remain under pressure in the near term unless demand from the finished steel segment improves after the festive period.
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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