- Prices climb on positive cues from nearby markets
- 9,000 t booked today, indicating selective purchases
India’s sponge iron market witnessed a price hike on 10 October 2025, with rates increasing by INR 50-250/t on a d-o-d basis. The highest rise was seen in Rourkela, where prices surged by INR 250/t. This rally was primarily driven by positive cues from neighbouring semi-finished and finished steel markets, as well as improved trading momentum in the previous session.
However, despite the upward price movement, market sentiment remained cautious. Many buyers were hesitant to make bulk purchases at higher prices, opting instead to adopt a wait-and-watch strategy. There was growing uncertainty over whether the current price rally is sustainable or if a reversal may follow, which kept buyer activity limited.
As a result, overall trade volumes declined, with only around 9,000 tonnes booked across India, a significant drop from the 27,000 tonnes recorded the previous day. The market largely remained need-based, with participants only procuring material to meet immediate requirements, avoiding speculative buying amid the ongoing price volatility.
Pellet prices in Raipur, a key input material for sponge iron production, remained stable at INR 10,300/t ($116/t) DAP.
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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