India: Sponge iron prices declined amid festive slowdown; trade activity remains muted

• Inquiries slow down, but selling pressure remains limited
  
  
• Producers focus on dispatching previously booked material
  
  

Indias sponge iron (DRI) prices remained stable or declined across various regions on 3 March 2026, with corrections limited to a narrow range of around INR 100-300/t d-o-d. The marginal correction was primarily driven by subdued trading activity ahead of the Holi festival, as buyers limited procurement, and overall market participation remained low. Most transactions during the day were need-based, with market participants adopting a cautious approach.

Mills largely attempted to maintain stable offers and were mainly focused on dispatching previously booked material, with no significant selling pressure observed. Weaker participation and reduced enquiries kept fresh order bookings limited. Demand in the finished and semi-finished steel segments also remained subdued due to the festive period, resulting in overall muted trade activity and a soft market sentiment during the day.

Trade volumes were recorded at around 500 t, compared to nearly 5,600 t in the previous session, indicating weaker buying interest and very limited market participation. In the near term, sponge iron prices are expected to remain largely stable as market activity may continue to stay slow due to the ongoing festive period. Trading is likely to pick up gradually after the holidays, which may provide better clarity on price direction depending on the recovery in demand and buying interest.

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%.

Click here for detailed methodology