- Further price corrections limit inventory build-up
- Festive restocking may offer support in short term
Sponge iron prices across India declined by INR 100-450/tonne (t) on 13 October 2025, as weak demand continued to weigh on the market. Most trades were concluded at lower levels, reflecting cautious buyer behaviour, while producers avoided steep price cuts despite persistent selling pressure.
Overall sentiment remained subdued, influenced by ongoing weakness in both semi-finished and finished steel segments. Daily trade volume was assessed at around 7,000 t, slightly below recent averages, underscoring continued hesitation among market participants. Inventory build-up remained limited, with expectations of further price corrections ahead.
While overall activity was dull, some market participants expect short-term support from festive restocking in the run-up to Diwali, as a few scattered deals hinted at mild optimism. Meanwhile, pellet prices in Raipur held steady at INR 10,300/t ($116/t) DAP.
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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