- Sellers offering heavy discounts conclude deals
- Steel demand sees prolonged stagnation
India’s sponge iron market stayed under selling pressure today, with prices correcting by INR 50-300/t across major regions. The sharpest fall was seen in Durgapur by INR 300/t, driven by weak demand and muted buyer sentiment.
Regional market dynamics
- Central & eastern markets: Most affected as sellers aggressively cut prices to generate liquidity amid low participation.
- Trade volumes: Around 11,100 t booked, up from 4,000 t recorded at prior session, supported by sharp price cuts rather than improved demand.
- Buyer behaviour: Procurement was need-based, with bulk booking interest still absent due to downstream market uncertainty.
Both semi-finished and finished steel segments are facing demand stagnation, reinforcing the bearish sentiment. Unless fresh demand cues emerge, sponge iron prices may remain under downside pressure in the near term.
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
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