- Cautious buying persists amid higher offers
- Smaller buyers face liquidity constraints
Sponge iron prices across India increased by INR 100-400/tonne (t) d-o-d on 11 November 2025, reflecting improved sentiment and firmer offers from producers in key markets. The sharpest rise of INR 300/t was recorded in the Raigarh region, supported by slightly improved buying interest from nearby billet manufacturers and firming raw material prices.
Despite the upward movement in prices, trade activity remained limited, as most buyers had already secured adequate inventories at lower rates during the previous sessions. Mills and traders showed little urgency to restock, adopting a wait-and-watch approach amid uncertainty over near-term finished steel trends. Higher prices faced resistance, particularly from induction furnace units struggling with narrow conversion margins and subdued end-user demand in the long steel market.
Sources said that buying activity was mainly need-based, with selective deals concluded at negotiated prices. Participants indicated that while sellers attempted to push for higher levels, overall transaction volumes remained modest. Liquidity constraints among smaller buyers also contributed to the slower pace of new bookings.
Daily sponge iron trade volumes were estimated at around 16,000 t, compared with 19,000 t in the previous session, reflecting lower offtake and cautious market participation.
Pellet prices in Raipur dropped INR 300/t to INR 9,600/t ($111/t) ex-works, with stable supply-demand dynamics maintaining market equilibrium.
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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