- Prices increase in south India amid improved restocking
- Pellet prices hold firm amid balanced market dynamics
India’s sponge iron market witnessed mixed price movements d-o-d on 1 December 2025, as varied regional demand patterns shaped trading activity across the major producing hubs. While most regions experienced mild price recovery due to improving sentiment in semi-finished and finished steel, others continued to struggle with limited inquiries and subdued steel movement.
In south India, sponge iron prices increased by INR 50-350/tonne (t) d-o-d amid improved restocking by secondary mills. Mills in this region continued to maintain steady operations, supported by stable raw material prices and improved liquidity flow compared to their northern and eastern counterparts. However, Bellary recorded a drop of INR 100/t due to limited buyer interest.
Spot prices fell by INR 100/t d-o-d in Chhattisgarh’s Raigarh, reflecting soft demand and need-based purchases.
Daily trade volumes were estimated at 13,000 t, with moderate participation from both traders and end-users. While some buyers explored opportunistic purchases at lower prices, uncertainty about future direction restrained bulk deals.
Meanwhile, BigMint’s pellet index for Raipur held steady at INR 9,650/t ($107/t) exw, reflecting mixed sentiment and balanced supply-demand dynamics in the raw material segment.
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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