- Pan India trade volume edges down d-o-d
- Firm iron ore, stable pellet prices to support offers
Sponge iron prices across major markets increased by INR 50-250/t on 17 December 2025, supported by improved sentiment and firmer offers from key producers. The positive momentum was largely influenced by price gains in the finished steel segment, where rates moved up by INR 100-500/t, which further strengthened sentiment.
Market update
In the sponge iron market, prices edged higher due to spillover support from nearby markets and a comparatively strong previous trading session. Encouraged by healthy sales and improved working conditions in the prior session, sellers raised their offers and attempted to push the market further. However, buyers remained cautious at higher price levels. Many had already secured bookings in the previous session and, therefore, chose to hold their positions, showing limited interest in fresh purchases at higher rates.
Trade activity
Trade volumes declined to around 8,000 t, compared to 13,000 t in the previous session, indicating some softening in buying momentum. Meanwhile, raw material prices remained stable, with pellet prices in Raipur assessed at INR 9,300/t (ex-works) and iron ore prices holding firm, providing cost-side support to the market.
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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