- Chennai sees sharpest d-o-d decline of INR 300/t
- Sellers avoid deep discounts despite soft demand
Indian sponge iron prices declined d-o-d in most regions on 16 October 2025. Prices dropped by INR 50-300/tonne (t) in most regions due to weak sentiment and sluggish demand, while Raigarh stood out with a price increase of INR 100/t, supported by regional demand and supply constraints. The sharpest correction was seen in Chennai, where prices plunged by INR 300/t amid poor buying interest and slow downstream activity.
Despite ongoing selling pressure, most sponge iron producers avoided aggressive price cuts to maintain market stability. However, buyers remained cautious, and most deals were settled at lower prices, indicating a lack of confidence in any near-term recovery. Sellers held back from deeper discounts, but the overall tone stayed weak, with limited support seen from downstream sectors.
Daily trade volumes were estimated at 9,600 t today compared to 7,300 t yesterday. Although volumes rose d-o-d, they remain low, reflecting weak participation and subdued buying interest in the spot market. On the raw material front, pellet prices in Raipur held steady at INR 10,250/t DAP, suggesting a stable yet cautious outlook in the pellet segment.
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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