India: Sponge iron prices drop d-o-d across most regions amid cautious procurement

• Trade volumes improve, but weak steel demand pressures sentiment
• Central, eastern prices fall sharper on weak demand, liquidity crunch

Sponge iron prices declined by INR 50-250/t d-o-d across most regions on 13 July 2026, with the exception of Hyderabad, where prices increased by INR 100/t. The price rise in Hyderabad was primarily supported by relatively better regional demand and improved buying interest, while weak procurement activity in other markets continued to exert downward pressure on prices.

Market scenario

Buying activity remained low to moderate on 13 July, with the recent price correction leading to improved enquiries and better bookings compared with the previous session. Despite this, overall sentiment in the sponge iron market remained under pressure amid subdued finished steel demand. Buying interest in the finished steel segment picked up during the latter half of the day, resulting in a modest improvement in procurement.

Overview of regional markets

Southern region

The southern region remained relatively stable compared to other regions, with prices stable. Producers were reluctant to reduce prices significantly due to persistent margin pressure arising from firm raw material costs. Buyers also avoided bulk purchases and increasingly sourced material from more competitively priced markets, particularly the central region.

Central, eastern regions

In the central and eastern regions, sponge iron prices declined by INR 50-200/t d-o-d , reflecting subdued buying interest and weaker demand from the finished steel sector. Lower finished steel demand has indirectly reduced sponge iron consumption. Additionally, liquidity constraints and limited fund availability discouraged buyers from making large-volume purchases. However, the eastern region witnessed relatively better procurement compared with neighbouring regions, as the recent easing in prices encouraged buyers to return to the market, while improved regional demand further supported buying activity.

According to BigMint, total recorded sponge iron trades on 13 July stood at approximately 18,850 t, around 11,000 t higher than the previous session.

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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