- Prices rise in south India due to limited supply
- Buyers stay away after hefty bookings last week
India’s sponge iron prices exhibited mixed trends across the country on 28 July 2025. Spot offers declined by INR 150-500/t across various regions due to weak inquiries and sufficient bookings already being placed in previous trading sessions. However, southern regions witnessed a price increase of INR 50-500/t, owing to tight availability.
Market updates
Following heavy bookings in the previous week, buyers refrained from engaging with higher prices today, hoping for a potential correction. At the same time, sellers were reluctant to reduce offers significantly. This disconnect between buyers and sellers led to a “wait-and-watch” sentiment on both sides.
Trade activity
Only need-based transactions were observed, with market participants mostly staying on the sidelines.
With market sentiment turning cautious and limited trading activity observed, the near-term outlook remains uncertain. Further price direction will depend largely on improvement in finished steel movement and support from macroeconomic factors.
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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