- Trade volume falls sharply in bearish market
- Buyers show caution, expect further price cuts
Sponge iron prices across major Indian markets declined by INR 50-400/t d-o-d on 12 January 2026, as weak market sentiment persisted amid subdued demand for finished steel. The soft downstream demand environment continued to weigh on sponge iron procurement, resulting in muted trading activity across regions.
Sellers attempted to revive buying interest by reducing offers; however, prevailing bearish sentiment and expectations of further price corrections kept buyers on the side lines. Market participants largely adopted a cautious stance, preferring to defer purchases in anticipation of additional downside in prices.
Consequently, transactions during the session were largely need-based, with no sizeable or bulk bookings heard. Despite price adjustments by sellers, buyer reluctance remained pronounced, reinforcing the overall sluggishness in market activity.
Market highlights
- Trade volumes declined sharply, with daily sponge iron transactions estimated at around 7,000 t, significantly lower than approximately 26,000 t recorded in the previous session, reflecting limited inquiries and weak procurement appetite.
- In the raw materials segment, pellet prices in Raipur remained stable at INR 9,300/t ex-works, indicating relatively firm sentiment in upstream markets even as sponge iron prices continued to face pressure.
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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