- Limited buying observed amid rising offers
- Dull finished steel offtake slows spot bookings
India’s sponge iron market witnessed a marginal upward movement on 18 July 2025, with spot offers increasing by INR 50-200/tonne (t) in select regions. However, several key markets remained stable amid restrained buying interest.
While manufacturers maintained firm pricing backed by tight supply and rising input costs, buyers remained cautious. Many cited that bulk bookings were already secured earlier at lower prices, leading to subdued interest in fresh procurement.
The continued pellet price hikes in Odisha and Chhattisgarh prompted a cautious stance among producers, further reinforcing firm offers in the market.
Despite muted demand in the finished steel segment, the sponge iron market remains supported by supply-side constraints and cost-push factors, which may keep prices elevated in the near term.
Around 9,250 t of sponge iron deals were concluded across regions today, reflecting a slight dip from the previous session.
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 as T2 and given a weightage of the balance 50%.
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