- Prices gain across major markets
- Limited bookings due to buyer caution
India’s sponge iron market witnessed a notable price increase on 30 October 2025, with rates climbing by INR 100-300/tonne (t) d-o-d across key producing regions. The sharpest hikes were observed in Hyderabad and Chennai, where prices surged by INR 300/t, supported by firm trends in the semi-finished and finished steel segments and improved trading momentum carried over from the previous session.
Despite the price uptick, overall market sentiment remained cautious. Buyers refrained from bulk procurement at higher levels, opting instead to monitor market movements after securing sufficient volumes earlier in the week. Additionally, logistical challenges and delayed lifting of previously booked material further slowed new transactions.
On the supply side, inventory pressure prompted some sellers to release stocks, adding to uncertainty over the sustainability of the ongoing price rally. Market participants remained divided on whether the current uptrend would extend or see near-term correction, depending on downstream steel demand and festive restocking momentum.
Trade volumes fell sharply to around 6,000 t compared with 30,000 t in the previous session, as most deals were need-based. Meanwhile, pellet prices in Raipur remained steady at INR 9,900/t DAP.
Rationale
Prices have been derived based on data sets of transactions, offers, bids, and indicative prices. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered T2 and given a weightage of the balance 50%.
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