- Uncertainty around finished steel prices dampens sentiment
- Enquiries stay limited due to strong bookings in past 2-3 days
India’s sponge iron (DRI) prices rose by INR 300-850/t d-o-d across major regions on 15 January 2026, driven by higher offers from producers. Despite the price increase, overall demand remained steady to muted, as elevated prices prompted buyers to adopt a cautious approach. Enquiries were limited, with most participants restricting purchases to immediate or urgent requirements, due to uncertainty surrounding finished steel price movements. Market sentiment, therefore, remained guarded despite the upward price momentum.
Markets in the central region recorded price increases of INR 300-500/t, while prices in the eastern region rose by INR 300-800/t. Despite the upward movement, demand remained limited with moderate enquiries heard. Sellers continued to push prices higher; however, trade activity stayed restrained as buyers had already procured material over the past two days, resulting in reduced spot requirements and consequently softened trade volumes during the day.
Daily trade volumes were estimated at around 7,250 t, down 61% from 18,500 t in the previous session, reflecting reduced participation from both traders and end-users. On the raw material front, pellet prices remained stable at INR 9,600/t ex-works, supported by steady iron ore prices and a balanced supply-demand scenario.
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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