- Prices slip by INR 50-100/t in most markets
- Around 12,000 t traded amid need-based buying
The Indian sponge iron market remained under pressure on 21 August 2025, with spot prices slipping further by INR 50-100/t across major production hubs, weighed down by subdued demand and cautious market participation. An exception was noted in Durgapur, where prices edged up by INR 50/t, offering only marginal support to overall sentiment.
Market dynamics
- Weak demand: Sellers reduce offers in an attempt to stimulate trades, but buying activity remained restricted as most participants adopted a wait-and-watch stance.
- Lower to moderate bookings: About 12,000 t of sponge iron changed hands during the day, largely through need-based procurement at the lowest available levels.
- Buyer strategy: Concerns over further downside, amid muted finished steel demand, deterred inventory building and weighed on overall liquidity in the spot market.
Persistent weakness in both the semi-finished and finished steel segments added to the bearish tone in the sponge iron market. With finished steel unable to generate buying momentum, raw material demand continues to face resistance.
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
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