India: Sponge iron market remains muted as limited inquiries weigh on trade

• Sponge iron prices stable; demand remains weak
  
  
• Trade volumes fall sharply amid subdued buying
  
  

The domestic sponge iron market remained largely stable on 24 June 2026, with prices either unchanged or easing marginally by INR 50-150/t in select regions. Market activity was relatively slow as most buyers had already secured material in earlier trading sessions, limiting fresh procurement requirements. Consequently, inquiry levels remained low and trade activity weakened, prompting suppliers to maintain a flexible pricing approach to stimulate bookings. Overall sentiment continued to be cautious amid muted consumption trends.

Demand from the finished steel segment also remained weak, providing limited support to sponge iron prices. Buyers largely restricted purchases to immediate requirements, reflecting the sluggish offtake in downstream markets. The absence of large-volume transactions further weighed on trading momentum during the day.

On the raw material front, pellet prices remained range-bound at around INR 8,900-9,000/t. In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis declined by $0.5/t to $112.5/t. Meanwhile, domestic non-coking coal prices at Visakhapatnam port remained stable at approximately INR 10,600/t.

According to BigMint's assessment, sponge iron trade volumes stood at around 6,750t on 24 June, marking a sharp decline from nearly 23,200t recorded in the previous session. The significant drop in transaction volumes highlighted cautious buyer participation and the lack of substantial demand in 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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