- Moderate bookings recorded across regions
- Restocking activity, tight supply push up prices
India’s sponge iron market witnessed a notable upward movement on 9 July 2025, with prices increasing by INR 100-500/tonne (t), particularly in the southern and east-central regions. The rally was driven by tight material availability and moderate restocking activity, even as overall demand remained selective.
Market sentiment and trading activity
Sentiment stayed cautious, despite the upward price movement, as ongoing bookings continued to support firm spot offers. Procurement was need-based, with re-rollers and secondary producers opting for selective bookings, while finished steel demand remained under pressure due to monsoon-related concerns.
Despite subdued end-product sales, anticipation of demand recovery in the near term kept buyer interest afloat, particularly in regions with tight availability.
Raw material impact
Rising pellet costs are putting additional pressure on production costs, prompting manufacturers to keep semi-finished offerings on the higher side. Mills are reportedly optimistic about sustaining current price levels in the short term.
Across India, approximately 13,210 t of sponge iron deals were concluded today, down from 22,900 t recorded in the previous trading session.
The combination of limited supply, cost-push factors, and cautious optimism may keep sponge iron prices elevated in the near term.
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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