- Prices rise INR 50-350/t as bulk buying strengthens across key production regions.
- Trade volume reaches 36,800 t on stronger steel demand and advance procurement.
The Indian sponge iron market witnessed a strong positive trend today, with prices increasing by INR 50-350/t d-o-d across the central, eastern, and southern regions, supported by improved regional demand and aggressive buying interest. Market sentiment turned bullish as concerns over an expected pellet shortage, particularly in the Raipur region, prompted buyers to secure material in advance. Bulk procurement was widely observed, resulting in the highest daily trading volume recorded so far this month.
Demand from the finished steel segment also strengthened, with higher buying inquiries reported across key consuming regions. Improved procurement by finished steel manufacturers provided firm support to the sponge iron market and encouraged suppliers to maintain a bullish pricing stance.
Raw material
On the raw material front, Raipur pellet prices increased by INR 50/t d-o-d to around INR 9,550/t, driven by tightening availability. In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis remained stable at around $105/t, while domestic non-coking coal prices at Visakhapatnam port increased marginally by INR 50/t d-o-d to approximately INR 10,400/t.
Trade volume
Buying activity remained robust throughout the day, with several bulk transactions concluded across major markets. BigMint recorded sponge iron trade volume of around 36,800 t, whereas 12,600 was recorded in the previous trading session, reflecting strong procurement amid concerns over tightening raw material availability.
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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