- Prices rise in eastern, central India on improved buying
- South sees price corrections as weak demand persists
The Indian sponge iron market exhibited mixed trends on 9 October 2025, with prices increasing by INR 100-200/tonne (t) in the eastern and central regions, supported by moderate restocking and an improvement in buying sentiment. Sellers in these regions either held offers firm or raised them slightly, responding to improved trade activity and stable raw material costs.
In contrast, southern markets witnessed a price decline of INR 100-200/t, as weak buying interest and limited trades prompted sellers to reduce offers in an attempt to revive demand. However, the buyer response remained muted amid subdued finished steel demand and cautious procurement.
Pellet prices in Raipur, a key input material for sponge iron production, remained stable at INR 10,300/t ($116/t) DAP, with mixed sentiments prevailing in the central region.
Trade volume, market activity
Trade activity saw a significant surge, with confirmed sponge iron transactions reaching around 27,000 t, up sharply from 10,000 t the previous day. The increase was driven by active participation in the eastern and central markets, where buyers took advantage of stable offers and improved market outlook. Meanwhile, southern regions continued to lag, restricted by weak finished steel offtake.
Overall, the market is showing regional divergence, with eastern and central India gaining strength, while the southern region continues to face demand-side challenges. Near-term price movement will depend on how finished steel demand evolves and whether input material prices remain stable.
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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