- Renewed buying confidence boosts trade volume
- In Raipur, sponge iron prices rise INR 550/t d-o-d
Sponge iron prices across major Indian markets increased by INR 50-550/t on 22 December 2025 supported by
improved market sentiment and firmer offers from key producers. Raipur recorded the sharpest rise, with prices jumping by INR 550/t d-o-d, reflecting strong regional demand and aggressive price revisions by sellers. Growing confidence among buyers, coupled with a visible pickup in finished steel demand, lifted overall market sentiment and encouraged participants to accept higher price levels.
Market sentiment
Market fundamentals strengthened further as sponge iron prices gained spillover support from nearby markets and benefited from a comparatively strong previous trading session. Improved demand for finished steel products reinforced the positive outlook, boosting buying interest across regions. The key markets in southern and eastern India witnessed healthy trade activity, while the central region saw moderate but steady buying interest. However, amid improving sentiment, sellers across regions raised offers, which helped push prices upward despite only gradual demand recovery.
Trade volumes
Trade volumes were reported at approximately 19,000 t today, higher than the 12,000 t recorded yesterday in what would appear to be early signs of market recovery. On the cost side, raw material prices remained supportive, with pellet prices in Raipur assessed at INR 9,300/t (ex-works) and iron ore prices holding firm, thereby providing a stable cost environment for producers and reinforcing the upward price momentum.
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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