- Limited buying seen as market confidence wilts
- Spot offers drop on soft demand
The Indian sponge iron market remained under pressure on 14 August 2025, with spot prices declining by INR 50-150/t d-o-d across major regions, especially in the central-eastern belt. An exception was Bellary, where prices saw a marginal uptick due to market uncertainty, while in other regions prices remained steady.
Muted buying interest kept trading volumes low. Sellers largely maintained offers, supported by sufficient bookings from the previous session, and opted to hold positions ahead of the upcoming holidays. With fresh inquiries weak, no major price shifts are expected in the immediate term once markets reopen.
Deals were limited, mostly at the lowest available offer levels, reflecting purely need-based procurement. Weakness in the semi-finished and finished steel segments further weighed on sentiment in the raw materials markets.
Market participants continue to adopt a cautious stance, as sluggish finished steel movement in recent days has curbed enthusiasm for fresh sponge iron bookings.
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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