- Volatile market conditions keep buyers cautious
- Trade volumes rise on lower offers
India’s sponge iron market witnessed mixed price movements on 18 December 2025, as uneven regional demand patterns influenced trading activity across key producing hubs. While select regions showed signs of mild recovery supported by restocking interest, others continued to face weak buying sentiment, constrained liquidity, and sluggish downstream steel movement, keeping the market cautious.
In south India, sponge iron prices edged up by INR 200-300/t, driven by moderate restocking from secondary steel mills. Producers in the region maintained stable operations, aided by steady raw material costs and comparatively better liquidity conditions. Improved cash flow and consistent plant utilization helped support prices, allowing sellers to resist aggressive discounts.
In contrast, the eastern and central regions witnessed a price decline of INR 50-200/t due to subdued demand and slow steel offtake. Market inquiries remained limited, prompting sellers to reduce offers in an attempt to stimulate buying interest. However, most transactions were need-based, with buyers largely refraining from bulk bookings.
Daily trade volumes were estimated at around 11,000 t, slightly higher than the previous day’s 8,000 t. The uptick was mainly driven by lower-priced deals in the central region, though overall market sentiment remained limited due to ongoing volatility.
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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