- Spot bookings rise amid market volatility d-o-d
- Slight recovery in finished steel supports offers
Indian sponge iron spot prices declined by INR 100-250/tonne (t) on 30 July 2025 across major producing regions. The steepest correction was observed in Bellary, due to subdued demand and limited activity throughout the day.
Initially, prices fell by INR 200-300/t in the first half of the day. However, sentiment shifted in the second half, as speculative buying emerged, lifting market participation. This shift led to a marginal price recovery, with several buyers making purchases amid expectations of an impending uptrend. The improved mood, though not reflective of immediate consumption needs, pointed to a demand largely driven by expectations of future price hikes. Finished steel offers also increased, supporting sponge iron prices.
An estimated 18,500 t of sponge iron were booked during the day, a notable increase compared to recent previous trading sessions. This rebound in trade volume underscores growing buyer interest and signals potential upward pressure on prices, should speculative sentiment continue to firm up.
While the market remains cautious overall, today’s activity indicates that buyers are beginning to re-engage, likely preparing for possible near-term price escalations.
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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