- Prices in Odisha, Raipur drop INR 200/t
- Weak downstream demand weighs on market
India’s sponge iron market continued to face downward pressure on 22 August 2025, with spot prices falling by INR 50-200/t across key production hubs. Jharsuguda and Raipur recorded a drop of INR 200/t, driven by persistently weak demand and cautious buying behaviour.
Market activity was limited to need-based procurement, as participants avoided building inventories in anticipation of further price corrections. The weakness was further aggravated by sluggish trends in the semi-finished and finished steel segments, keeping overall sentiment bearish.
- Demand trend: Re-rollers and secondary steel producers restricted purchases to immediate requirements. Minimal demand recovery in finished steel offered little price cushion for raw materials.
- Trade volumes: Around 7,100 t was transacted today, reflecting subdued buyer participation.
Amid weak downstream consumption sponge iron prices are expected to remain range-bound in the near term, pending signs of recovery in finished steel demand.
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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