- Buyers remain cautious amid steel market volatility
- Trading volume falls sharply from previous session
India’s sponge iron prices fell by INR 150-400/t d-o-d on 3 November 2025 across major producing regions. The decline was largely driven by muted buying interest and increased selling pressure, as traders and manufacturers adjusted offers to attract limited inquiries.
Despite the drop, most sellers refrained from steep price cuts, citing already narrow profit margins and sluggish trade momentum. The overall market tone remained weak and uncertain, as buyers adopted a wait-and-watch approach amid volatile steel market conditions.
Recent restocking by several buyers also reduced immediate procurement needs, adding to the slowdown in fresh orders. Both semi-finished and finished steel segments displayed subdued activity, with no major positive triggers emerging to support prices.
Market highlights
- Trade activity: Overall buying interest remained low, with only around 7,000 t of sponge iron traded, down sharply from 32,000 t in the previous session.
- Regional trends: Sellers offered modest reductions to sustain movement, though buyer response remained muted amid uncertain price direction.
- Raw materials: Pellet prices in Raipur held steady at INR 9,950/t DAP, reflecting a balanced sentiment in the raw material segment.
Market participants expect the weak trend to persist in the near term, unless there is a clear recovery in semi-finished or finished steel demand.
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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