- Volatile market conditions keep buyers cautious
- Trade volumes rise on lower offers
India’s sponge iron market exhibited mixed trends on 26 December 2025, with regional demand variations influencing overall sentiment. Market participants remained cautious, and most buyers limited enquiries to immediate requirements amid uncertainty over price direction.
In the east region, sponge iron prices rose by INR 200-500/t, supported by moderate restocking from secondary mills. Stable mill operations, steady raw material costs, and relatively better liquidity helped improve seller confidence. Additionally, previously active bookings and material movement from the eastern region to outside markets strengthened demand, allowing sellers to raise offers.
Conversely, prices in the central and south regions declined by INR 100-200/t due to subdued demand and slow steel offtake. An exception was the Chennai market, where prices increased by INR 200/t, driven by a regional supply-demand imbalance. Overall enquiries remained limited, prompting sellers in weaker regions to lower offers to attract buyers. Transactions largely remained need-based, with buyers avoiding bulk purchases.
Daily trade volumes were estimated at around 17,000 t, up from 13,500 t on the previous day. The increase was mainly driven by lower-priced deals in the central region and some external demand in the east, although market sentiment remained cautious amid ongoing volatility. Meanwhile, pellet prices in Raipur held steady at INR 9,300/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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