India: Sponge iron prices rebound amid improved buying - 13 Aug

• Spot bookings rise amid market volatility
  
  
• Slight recovery in semis market supports DRI tags
  
  

Sponge iron prices showed mixed trends across major Indian production hubs on 13 August 2025. Early trading saw declines of INR 50-100/t in Raipur and Ramgarh, while Durgapur and Rourkela recorded gains of INR 100/t later in the day. Most other key hubs remained steady, indicating a market in transition rather than distress.

The first half of the session was marked by price drops of INR 100-200/t on weak buying interest and cautious sentiment. However, speculative buying in the second half reversed the trend, pushing prices higher. The recovery was largely sentiment-driven, with participants positioning ahead of an anticipated price uptrend rather than responding to immediate consumption needs.

Daily bookings surged to 24,200 t well above the recent average of 10,000 t fuelled by expectations of increased demand ahead of the upcoming holidays. Traders and suppliers moved quickly to secure material in anticipation of firmer prices.

Positive sentiment was further supported by an uptick in finished steel offers, signaling a forward-looking market mood despite modest end-user demand. Seasonal buying patterns and anticipated consumption are expected to keep sentiment upbeat in the near term.

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%.