- Buyers stay away after securing ample inventories earlier
- Higher raw material costs continue to pressure producer margins
The Indian sponge iron market witnessed sluggish trading activity on 6 August 2026, with prices declining by INR 50-300/t across major regions amid weak demand over the past two days. The sharpest correction was seen in Raipur, where sponge iron prices settled at INR 25,450/t ex-works, down INR 250/t from the previous session. Buyers remained cautious as most had already secured sufficient material earlier, resulting in limited fresh procurement despite lower offers from suppliers.
Sellers attempted to stimulate demand by reducing prices, but the strategy failed to generate significant buying interest. Market participants reported that transactions were largely confined to need-based and requirement-based purchases, with no major bulk deals concluded during the day. At the same time, elevated raw material prices continued to squeeze producer margins, limiting the scope for aggressive price reductions despite weak market sentiment.
The overall decline in sponge iron prices was primarily driven by subdued finished steel demand across key consuming regions, which continued to weigh on buyer confidence. Trading volumes also softened noticeably, with market transactions falling to around 8,000 t, compared with nearly 10,000 t in the previous session. According to BigMint’s market assessment, approximately 8,000 t of sponge iron trades were recorded today, highlighting the cautious sentiment prevailing across the market.
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%.
Click here for detailed methodology
Leave a Reply