- Central India leads gains on stronger buying interest
- Trade volumes surge on short-term restocking activity
India’s sponge iron market witnessed a mixed trend on 14 May 2026, with buying activity improving significantly d-o-d. Spot offers in central India increased by INR 300-350/t, supported by stronger bookings and improved buyer participation. However, markets in Odisha and southern India remained subdued due to weak demand and limited enquiries.
Market sentiment turned positive during early trading hours, supported by short-term restocking activity. Traders and manufacturers actively entered the market to replenish inventories after recent corrections, leading to improved deal volumes across key producing regions.
Central India emerged as the strong point, with robust participation from both traders and billet manufacturers. Eastern markets also reported better enquiry levels, although buying remained selective in certain pockets. In contrast, Odisha and southern markets continued to witness subdued activity as weak downstream steel demand restricted aggressive procurement.
A significant jump in daily trade volumes highlighted the improved sentiment, with approximately 16,900 t of sponge iron booked compared with 7,300 t in the previous trading session.
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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