- Weak demand persists in eastern region
- Buyers remain cautious, engage in need-based deals
India’s sponge iron market showed a mixed trend on 2 December 2025, with regional demand variations shaping overall sentiment. Market participants remained cautious and most buyers restricted inquiries to immediate requirements due to uncertainty about short-term price direction.
In south India, sponge iron prices increased by INR 50-100/t, supported by moderate restocking from secondary mills. Mills in the region continued stable operations, aided by consistent raw material costs and relatively better liquidity compared to northern and eastern India.
East India, on the other hand, witnessed a price decline of INR 50-100/t on soft demand and slow steel movement. Central India remained largely stable with no major price swings as sentiment stayed weak and buying activity was restricted.
Daily trade volumes were estimated at 5,000 t, a steep fall from the previous day’s 13,000 t, highlighting subdued participation. Although a few buyers explored opportunistic purchases at lower prices, persistent uncertainty prevented bulk deals, keeping the broader market direction muted.
Meanwhile, pellet prices in Raipur held steady at INR 9,550/t ($106/t) exw, reflecting mixed sentiment and balanced supply-demand dynamics in the raw material segment.
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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