- Prices ease on limited buying
- Muted enquiries, thin trade weigh on market
India’s sponge iron (DRI) prices eased by INR 100–400/tonne (t) d-o-d across regions on 21 January 2026, mainly due to limited buying interest. Market participants indicated that sellers were largely focused on dispatching previously booked material, resulting in no notable selling pressure in the spot market. On the raw material front, prices also corrected amid dull buying activity. Overall procurement remained confined to immediate requirements, with buyers continuing to adopt a cautious, wait-and-watch approach.
Region-wise, prices in the central and southern regions witnessed a correction, while the eastern market remained largely stable. However, buying enquiries were slow across all regions, keeping trading activity measured amid subdued market sentiment. Meanwhile, pellet prices on the raw material front remained stable at INR 9,650/t ex-works.
Daily trade volumes declined to around 5,800 t from approximately 8,650 t in the previous session, reflecting dull buying interest and a muted market sentiment in the sponge iron segment.
With a modest price correction in place, prices are expected to stabilise in the near term, which could support a gradual improvement in overall market sentiment.
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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