India: Sponge iron market shows mixed trends due to regional divergences

• Improved buying seen in central and eastern region
  
  
• Markets in south India continue to face weak demand
  
  

The Indian sponge iron market exhibited mixed trends on 31 December 2025, with prices increasing by INR 100-150/t in the eastern and central regions, supported by moderate restocking and an improvement in buying sentiment. Sellers in these regions either held firm or raised offers slightly, responding to improved trade activity and rising raw material costs.

In contrast, markets in the south witnessed a price decline of INR 200/t, as weak buying interest and limited trades prompted sellers to reduce offers in an attempt to revive demand. However, buyer response remained muted on subdued finished steel demand and cautious procurement.

Pellet prices in Raipur increased slightly by INR 100/t reaching INR 9,500/t ($105/t), with mixed sentiments prevailing in the central region.

Trade activity saw a significant surge, with confirmed sponge iron transactions reaching around 16,800 t, up from 7,300 t yesterday. The increase was driven by active participation in the eastern and central markets, where buyers took advantage of stable offers and improved market outlook.

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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