- Central and eastern regions lead price gains
- All-India trade volumes jump nearly 36% d-o-d
India’s sponge iron market witnessed a strong upward movement on 29 October 2025, with prices rising by INR 100-500/tonne (t) across key producing regions. The sharpest gains were recorded in Raigarh and Durgapur, where prices surged by INR 500/t, while Hyderabad and Chennai witnessed minor declines of INR 100/t due to sluggish demand and weather disruptions in the southern markets.
Market sentiment strengthened significantly, supported by positive cues from regional steel markets and an uptick in semi-finished and finished steel demand, which lifted confidence after a dull previous session. Buyers, encouraged by lower prices in earlier trades, actively booked material in bulk, prompting sellers to raise offers as trading progressed.
The central and eastern regions led the upward price movement, while south India remained muted owing to logistical constraints and subdued demand. Improved participation was noted across the value chain, with stronger momentum in finished steel as buyers expected further price hikes, lending firm support to sponge iron prices.
Daily trade volumes surged to nearly 30,000 t today, up from 22,000 t recorded in the previous session, reflecting heightened buying activity and restocking interest. Meanwhile, pellet prices in Raipur dropped by INR 100/t to INR 9,900/t (DAP), providing minor cost relief for sponge producers despite firming market conditions.
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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