- Inquiries remain limited amid cautious market sentiment
- Dull finished, semis demand pressures sponge iron trades
Indian sponge iron prices corrected by INR 50-150/tonne (t) across key markets on 9 September 2025. Bellary was the only exception, where prices edged up by INR 100/t on localised demand. The overall decline reflects limited buyer participation amid ongoing uncertainty in price direction.
Market highlights
- Market sentiment: Buyer inquiries remained limited, as participants adopted a cautious, wait-and-watch approach, weighed down by unclear price trends and weak downstream demand.
- Trade volume: Confirmed trade volumes stood at just 4,950 t, underscoring muted activity and limited fresh bookings.
- Market activity: Lacklustre demand in both finished and semi-finished steel segments restricted sponge iron purchases to urgent or need-based requirements.
- Buyer behaviour: Persistent weakness in downstream steel demand kept buyers cautious, curbing aggressive procurement and slowing overall market momentum.
With demand remaining sluggish and buyers hesitant to commit to fresh bookings, sponge iron prices are likely to stay under pressure in the near term unless stronger cues emerge from finished steel markets.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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