- Pan-India trade volumes surge d-o-d
- Improved buying lifts prices in some regions
Indian sponge iron prices showed mixed movement on 12 September 2025, with gains of INR 50-200/t in the eastern and central regions, supported by improved demand and positive sentiment. In contrast, the southern market saw a decline of INR 50-100/t, weighed down by weak buying interest and limited trade activity.
Market highlights:
- Market sentiment: Confidence improved in the eastern and central belts with moderate restocking, prompting sellers to hold or slightly raise offers. In the south, however, sellers trimmed offers to stimulate tepid demand.
- Trade volume: Pan-India confirmed trades rose sharply about 26,000 t, a 70% jump d-o-d, driven by stronger participation in the eastern and central markets.
- Market activity: Demand recovery was selective, with spot activity firming where downstream steel consumption showed early signs of revival.
- Buyer behaviour: Buyers in active regions responded positively, while south India-based buyers stayed cautious, restricting purchases amid persistent weakness in finished steel demand.
With regional demand recovery and higher trade volumes, sponge iron prices are likely to maintain a slightly bullish trend in the near term, though momentum will remain region-specific.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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