India: Sponge iron prices rise by INR 100-350/t amid improved buying activity

• Sponge iron market gains on improved buying interest
  
  
• Trade volumes recover amid steady procurement
  
  

India's sponge iron market witnessed a firm uptrend on 29 June 2026, with prices increasing by INR 100-350/t across most regions, supported by improved buying interest and stronger regional demand. Procurement inquiries increased compared to the previous trading session, boosting sellers' confidence and prompting them to raise offer prices. Trading activity remained robust during the first half of the day; however, momentum eased in the latter half as several inquiries failed to convert into confirmed deals. Nevertheless, the overall market remained positive, underpinned by sustained demand and improved price realizations.

Demand from the finished steel segment also strengthened, with higher buying inquiries reported across key consuming regions. Improved procurement by finished steel manufacturers provided firm support to the sponge iron market and encouraged suppliers to maintain a bullish pricing stance. Although the conversion rate of inquiries into actual transactions remained moderate, steady demand continued to support overall market sentiment.

On the raw material front, pellet prices remained range-bound at INR 8,900-9,000/t. In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis declined by $1.5/t to $111/t. Meanwhile, domestic non-coking coal prices at Visakhapatnam port also softened by INR 150/t to INR 10,450/t.

According to BigMint's assessment, sponge iron trade volumes rose to around 17,580 t on 29 June from nearly 10,200 t in the previous trading session, reflecting a notable improvement in market participation despite relatively fewer deal closures during the latter half of the day.

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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