India: Sponge iron prices rise modestly amid cautious buying - 19 Aug

• Spot offers increase across markets
  
  
• Bookings remain subdued over slow trade activity
  
  

The domestic sponge iron market registered price hikes of INR 50-300/tonne (t) across key regions on 19 August 2025, with Hyderabad leading the rally at INR 300/t. The upward movement was largely driven by expectations from the OMC auction held today, which prompted sellers to lift offers in anticipation of stronger demand.

However, the response from buyers was muted. Most adopted a wait-and-watch stance, restricting purchases to immediate requirements. Concerns over price sustainability and fluctuating input costs weighed on sentiment, keeping bulk bookings limited.

The overall trade volume was reported at around 12,000 t, notably lower than yesterday's levels. This highlights buyer caution amid fluctuating input costs and unclear demand direction.

Market participants are now closely tracking the OMC auction outcome, which is expected to set the tone for short-term price direction. Until clearer cues emerge, buying is likely to remain cautious despite firm offers.

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%.