- Eastern region leads in price decline today
- Booking volumes plunge on weak trade activity
Sponge iron spot prices in India fell by INR 100-400/t on 5 August 2025, with the steepest drop of INR 300-400/t recorded in Durgapur, driven by weak demand and limited trading activity. Similar price corrections were reported in Raipur, Ramgarh, Raigarh, and Durgapur, reflecting an overall bearish market tone.
Buyer participation was minimal, as most resisted current offers from sellers. Only small, need-based trades were concluded, leaving the market appearing nearly inactive. Sentiment remained subdued, with many participants anticipating further price declines in the near term.
The finished steel segment also experienced subdued activity, as the majority of buyers had already secured material in earlier sessions and preferred to remain on the sidelines. This downstream weakness further weighed on sponge iron demand across the value chain.
In Bellary, sponge iron producers reported that while some buyers showed interest due to rising finished steel demand, most manufacturers are still operating at around 50% capacity. If current demand levels persist, producers may consider scaling up production in the coming weeks.
Overall, only 8,000 t of sponge iron was booked during the day, a sharp decline from 16,200 t in the previous session, underscoring weaker buyer confidence.
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%.
Click here for detailed methodology
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