India: Sponge iron prices decline; trade volumes recover slightly
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- Market activity improves, but aggressive buying absent
- Trade volumes recover, but demand remains weak across regions
India's sponge iron prices declined by INR 100-400/t across regions on 20th May 2026 amid subdued market sentiment and weak buying interest. In the key Raipur market, prices fell by INR 200/t to INR 25,000/t ex-works.
Buying activity improved marginally compared to the previous few subdued sessions; however, overall market sentiment remained cautious, with procurement largely limited to immediate requirements. Weak finished steel demand continued to pressure raw material prices, restricting aggressive buying interest across regions. Market participants remained watchful, as subdued downstream demand and cautious procurement behaviour kept overall trade activity under check.
BigMint recorded trade volumes of around 18,400 t, compared to approximately 7,600 t in the previous session, indicating a recovery in procurement levels and market activity. However, the sponge iron market continued to remain under pressure, with the improvement in volumes largely driven by lower procurement in the previous few sessions. Overall buying continued to remain need-based, reflecting cautious market sentiment.
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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