India: Sponge iron prices edge down on weak demand, buying remains subdued

• Sellers maintain offers, buyers limit bookings
  
  
• Weak semis demand exerts pressure on prices
  
  

Sponge iron prices dropped by INR 50-300/t (t) d-o-d across regions on 6 May 2026, weighed down by weak demand. Despite sellers reducing offers to boost enquiries, cautious buyer participation and resistance to current levels kept sentiment negative, limiting any price recovery.

Buying activity remained muted, with participants restricting procurement strictly to immediate requirements. Market sentiment stayed cautious throughout the day, with buyers adopting a wait-and-watch approach amid downward price trend. Enquiries were limited, reflecting weak buying interest, while overall trade activity remained subdued with limited transactions.

In both finished and semi-finished steel segments the buying activity was remained weak, with minimal enquiries in the market. Overall participation was limited.

BigMint recorded trade volumes of around 10,200 t, up from approximately 3,000 t in the previous session. While volumes showed a marginal improvement, overall buying interest remained weak. The relatively low activity continues to reflect subdued participation and cautious sentiment among market players.

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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