- Positive sentiment boosted sellers’ offers
- Buyers cautious amid elevated price levels
Sponge iron prices across major Indian markets witnessed an increase of INR 100-700/t d-o-d on the first trading day of 2026, supported by improved market sentiment and firmer offers from key producers. The sharpest rise was observed in the Raipur region, where prices surged by INR 700/t, driven by buying interest in the previous session and a positive outlook at the start of the new year. In other regions, price gains were largely influenced by momentum carried forward from the last trading session of December.
Market sentiment
Market participants noted that prices edged higher due to spillover support from nearby markets and stronger trading activity earlier. Sentiment was further boosted by the DGTR’s implementation of a definitive safeguard duty on imported non-alloy and alloy steel flat products, along with Tier-I primary mills increasing rebar prices by up to INR 2,000/t in the last week of December.
On a d-o-d basis, rebar prices increased by INR 200-1,500/t, pig iron rose by INR 800-1,200/t, and billet prices climbed by INR 400-1,300/t, lending additional support to sponge iron prices. However, despite improved enquiries, higher offers limited actual trade conversions.
Trade activity
Overall sponge iron trade volumes were recorded at around 16,000 t, lower than 17,000 t in the previous session, indicating a slight softening in momentum. Meanwhile, raw material prices remained stable, with pellet prices in Raipur at INR 9,500/t (ex-works) and iron ore prices steady, providing cost-side support to DRI producers.
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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