- Need-based buying dominates as higher prices weigh on demand
- Buyers hesitant to build inventories amid uncertain steel demand outlook
Indian sponge iron prices witnessed a strong uptrend at the beginning of the week, with prices increasing by INR 300-600/t d-o-d on 27 July 2026 across all major regions, supported by positive market sentiment and healthy buying activity in the previous session. According to BigMint, Raipur PDRI prices settled at INR 25,600/t exw, up INR 500/t d-o-d, reflecting improved market sentiment.
Market sentiment remained bullish as robust trading activity in both finished and semi-finished steel segments during the previous session encouraged producers to raise offers. However, despite the price increase, actual market activity remained relatively slow. Buyers turned cautious at the higher price levels, restricting procurement to immediate requirements amid uncertainty over whether the current price rally would sustain.
No major bulk bookings were reported across regions, with most participants preferring need-based purchases. Buyers remained hesitant to build inventories, as they awaited clearer price direction before committing to larger volumes. This cautious approach limited overall spot market momentum despite the positive sentiment.
On the cost side, raw material prices continued to remain firm, providing support for higher sponge iron offers. Trade activity softened compared to the previous session, with BigMint recorded around 16,000 t of transactions, nearly 6,000 t lower than the previous day, indicating that higher prices weighed on buying interest and slowed market participation.
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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