India: Sponge iron prices climb up on strong post-festival demand

• South African thermal coal prices rise, lifting production costs
  
  
• Strong semis, finished steel demand supports DRI price uptick
  
  

Indias sponge iron (DRI) prices increased by INR 100-600/t d-o-d across major regions on 5 March 2026. Buying activity improved significantly in the post-Holi period. The rise in South African thermal coal prices remained the key factor supporting the uptrend, as increased raw material costs pushed production expenses higher.

Demand in the finished and semi-finished steel segments also remained strong across the market, providing additional support to sponge iron prices.

Trade volumes surged to around 29,400 t, compared to nearly 5,600 t in the previous session, indicating robust market participation and stronger buying interest.

In the near term, sponge iron prices are expected to maintain an upward bias, as elevated raw material costs are likely to support mills in sustaining higher price levels.

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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