- Raigarh, Hyderabad see sharpest drops of INR 300/t
- Producers avoid steep price cuts due to narrow margins
India’s sponge iron market continued to face downward pressure on 5 November 2025, with prices correcting by INR 50-300/t d-o-d across key producing regions. The sharpest declines were recorded in Raigarh and Hyderabad, where offers dropped by up to INR 300/t, driven by sluggish demand and thin inquiries.
Despite subdued market activity, most producers avoided steep price cuts due to rising raw material costs, which have constrained margins. Consequently, active participation in the spot market remained limited. Overall market sentiment stayed weak and cautious, as both semi-finished and finished steel segments continued to exhibit a downturn, keeping buying sentiment restrained.
Market highlights
- Demand sentiment: Sparse inquiries and weak procurement persisted, reflecting buyers’ reluctance to restock amid soft steel fundamentals.
- Regional trends: Central and southern markets witnessed notable pressure, while a few eastern regions witnessed limited price stability.
- Raw materials: The pellet index in Raipur rose marginally by INR 50/t, reaching INR 10,000/t ($112/t) DAP, supported by moderate procurement from neighbouring regions.
Overall, the sponge iron market remained subdued, with participants maintaining a wait-and-watch stance ahead of fresh cues from the semi-finished steel segment.
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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