India: Sponge iron prices increase sharply by INR 500-1,400/t d-o-d amid improved demand - 29 Dec

• Eastern, southern regions lead d-o-d price gains
  
  
• Improvedsemis demand boosts sponge iron market
  
  

India's sponge iron pricesrose by INR 500-1,400/tonne (t) across key producing regions on 29 December 2025. The sharpest gains were recorded in Durgapur, Ramgarh, and Chennai, where prices surged by INR 1,150-1,400/t.

Market sentiment strengthened significantly, supported by positive response from finished steel markets and an uptick in semi-finished steel demand, which lifted confidence after a dull previous session. Buyers, encouraged by lower prices in earlier trading sessions today, actively booked sponge iron in bulk, prompting sellers to raise offers as the day progressed.

The eastern and southern regions led the upward price movement. Notably, improved participation was noted across all the major regions, with stronger momentum in finished steel as buyers expected further price hikes, which lent firm support to sponge iron prices.

Daily trade volumes surged to nearly 26,000 t, up 53% from 17,000 t recorded in the previous day, reflecting a sharp improvement in buying activity. Meanwhile, pellet prices in Raipur rose slightly by INR 100/t to INR 9,400/t (DAP).

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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