- Positive steel market sentiment encourages producers to lift offers
- Higher prices prompt buyers to restrict purchases to urgent needs
Sponge iron prices across major Indian markets increased by INR 50-350/tonne (t) d-o-d on 23 January 2026, supported by improved market sentiment and firmer offers from key producers. Raipur witnessed the sharpest increase of INR 350/t d-o-d, reflecting strong seller confidence. Positive sentiment in the broader steel market encouraged producers to maintain elevated offers, despite cautious buying behaviour prevailing in the spot market.
Enquiries in the finished steel segment remained limited, while the semi-finished steel market continued to witness moderate interest. However, elevated prices prompted buyers to restrict purchases to immediate requirements. Moreover, due to Vasant Panchami and the long weekend ahead, overall market activity and trade participation remained limited.
Trade volumes slightly up around 9,700 t today, compared with approximately 8,000 t in the previous session, indicating limited buying momentum. Despite lower volumes, market sentiment remained firm. On the cost front, raw material prices were largely stable, with pellet prices in Raipur assessed at INR 9,650/t ex-works and iron ore prices holding steady, providing cost-side support to DRI producers.
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
Leave a Reply