- Market volatility keeps prices range-bound
- Buying activity remains moderate d-o-d
Sponge iron prices across India increased by INR 100-200/tonne (t) on 3 December 2025 supported by improved market sentiment and firmer offers from key producers. The Raigarh market saw the sharpest rise of INR 200/t driven by slightly stronger buying interest from billet manufacturers and strengthening raw material prices. Despite this uptick, the overall sponge iron market continued to trade within a largely range-bound pattern.
Market participants noted that selling pressure persisted, which limited the scope for higher offers. Buyers remained cautious and resisted elevated prices, resulting in moderate procurement activity. Most bookings were need-based which restricted any sharp upward momentum.
The finished steel segment, however, recorded noticeable improvement thereby providing indirect support to the semi-finished and raw material markets. Finished steel prices rose by INR 100-600/t, while higher enquiries and better trade sentiment contributed to a jump in overall market activity. Trade volumes increased significantly to around 12,000 t, compared with 5,000 t recorded in previous trading session.
Pellet prices in Raipur held steady at INR 9,550/t (ex-works), while iron ore prices remained firm, contributing to stable input cost conditions amid shifting sentiment in the finished and semi-finished steel markets.
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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