- Weakening finished steel demand exerts pressure
- Bookings remain limited to need-based transactions
Sponge iron prices across India witnessed a decline of INR 50-400/t on 15 October 2025, as persistent weakness in demand and limited market enquiries kept trading subdued. The sharpest correction was observed in the Bellary region, where prices fell by INR 400/t, driven by thin buying interest and sluggish 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 in near-term price recovery.
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.
With the festive season approaching, participants expect some improvement in demand through short-term restocking, though confirmed deals remain limited.
Daily sponge iron trade volumes were assessed at 7,300 t, down from 10,300 t in the previous session, indicating weak participation. Meanwhile, pellet prices in Raipur slipped by INR 50/t to INR 10,250/t DAP, reflecting a cautious yet stable market scenario.
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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