- Weakening finished steel demand exerting pressure
- Bookings remain limited to need-based buying only
Sponge iron prices across India fell by between INR 50-750/tonne on 5 January 2026, as persistent weakness in demand and limited market enquiries kept trading subdued. The sharpest correction was observed Ramgarh and Raigarh regions, due to weak buying interest and subdued downstream activity.
Despite ongoing selling pressure, producers refrained from aggressive price cuts in an attempt to maintain market stability. However, most transactions were concluded at lower price levels, reflecting cautious buying behaviour and a lack of confidence amongst participants.
Market sentiment remained bearish and inactive, with transactions largely restricted to need-based procurement within a narrow price range. Sellers offered slight discounts to attract buyers, though overall response stayed weak due to subdued sentiment in both semi-finished and finished steel markets.
Trade volumes recorded around 9,600 t, compared with approximately 16,000 t in the previous session, indicating softening in buying momentum. Raw material prices were largely stable, with pellet prices in Raipur assessed at INR 9,500/t ex-works.
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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