- Sellers trim offers to attract buyers
- Weak steel demand weighs on sponge prices
Indian sponge iron prices declined by INR 50-450/t across key markets on 11 September 2025, as subdued demand and lack of price clarity continued to weigh on sentiment. Most deals were concluded at the lower ends of existing price ranges, with no significant regional variation.
Market highlights:
- Market sentiment: The market remained under selling pressure, with sellers trimming offers to attract trades. Buyer sentiment stayed weak amid unclear market direction and sluggish downstream cues.
- Trade volume: Confirmed trades were recorded at around 10,500 t, reflecting limited to modest buying appetite and restricted booking activity despite lower offers.
- Market activity: Dull demand persisted in both finished and semi-finished steel, which kept sponge iron procurement muted and spot activity subdued.
- Buyer behaviour: Participants adopted a wait-and-watch approach, restricting purchases to urgent requirements and avoiding bulk bookings.
With buyers staying cautious and demand muted, sponge iron prices are likely to remain under pressure in the near term unless finished steel markets provide stronger cues.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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