- Limited buying shows weak market confidence
- Buyers remain hesitant as prices soften
Indian sponge iron prices continued their downward trajectory on 7 August 2025, with spot prices falling by INR 100-200/t across major regions, particularly in the central-eastern and Bellary clusters. However, Chennai witnessed a slight price uptick, attributed to market uncertainty rather than genuine demand recovery.
Amid muted demand, sellers were compelled to reduce prices in an attempt to boost trade, but buyer participation remained limited. Most buyers adopted a wait-and-watch approach, refraining from bulk procurement due to sluggish finished steel sales and expectations of further price corrections.
Only limited deals were concluded, mostly at the lowest available offer levels, reflecting need-based buying as buyers were reluctant to build inventory at current price points. The semi-finished and finished steel segments mirrored this weakness, further dampening sentiment in the raw material market.
Approximately 9,700 t of sponge iron was booked during the day, underscoring the prevailing low confidence and hesitant stance adopted by buyers across regions.
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%.
Click here for detailed methodology
Leave a Reply