- Sponge iron demand stayed strong on limited availability
- Raw material stability supported price floor
India’s sponge iron market witnessed mixed price movements on 6 February 2026, as uneven regional demand and tight availability shaped trading activity across key producing hubs. While select markets saw improved buying interest and firmer offers, others continued to struggle with cautious procurement amid volatile sentiment.
In southern and eastern India, sponge iron prices edged lower by INR 100/t, as moderate restocking by nearby secondary steel mills failed to generate strong momentum. Buyers in these regions largely adopted a wait-and-watch approach, with uncertainty over near-term price direction limiting fresh bookings despite stable downstream operations.
In contrast, central India reported improved buying activity, with sponge iron offers rising by INR 50-250/t across select locations. Markets such as Raigarh, Rourkela, and Raipur witnessed a noticeable pickup in demand during the latter half of the trading session, supported by improved bookings in finished steel and semi-finished products. Traders noted that tighter material availability in these regions also contributed to firmer pricing.
Daily trade volumes were recorded at around 17,800 tonnes, reflecting a modest improvement in participation from both traders and end-users. While some buyers capitalised on lower prices in weaker regions, overall deal sizes remained limited, as uncertainty over future price direction continued to cap bulk procurement.
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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