- Spot offers edge down as caution grips buyers
- Weak finished steel sentiment weighs on market
The Indian sponge iron market remained under pressure on 3rd Oct 2025, with prices declining by INR 50-100/tonne across major regions. Most transactions were limited to need-based procurement, as buyers refrained from bulk bookings amid ongoing market uncertainty.
Market sentiment remained subdued, with sellers showing reluctance to reduce offers further despite weak demand. The persistent price weakness reflected a broader lack of confidence among both buyers and sellers, keeping overall trade activity within a narrow range.
Inventory buildup was largely avoided, as participants continued to anticipate further price corrections. Additionally, continued weakness in downstream steel segments added pressure on sponge iron prices, reinforcing a cautious outlook and limiting prospects for any short-term recovery.
Daily trade volumes stood at approximately 10,000 t, reflecting tepid market participation. Regional price movements remained mostly uniform, while overall sentiment stayed bearish, with the majority of market participants maintaining a wait-and-watch approach.
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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