India: Sponge iron prices soften d-o-d on weak procurement
...
- Wide bid-offer gaps slow down trade
- Finished steel demand remains weak
The domestic sponge iron market witnessed a weak trend on 01 July 2026, with prices declining by INR 50-200/t d-o-d across most regions. In the benchmark Raipur market, sponge iron prices fell by INR 150/t d-o-d to INR 23,900/t, with offers at around INR 24,100-24,200/t and bids at around INR 23,700-23,800/t. The bid-offer gap widened to around INR 200/t today, limiting trade negotiations and resulting in fewer deal closures. Buying activity remained muted throughout the day as a wide gap between buyers' bids and suppliers'. The subdued pace of transactions prompted suppliers to adopt a more flexible pricing strategy to attract bookings. Overall, market sentiment remained cautious amid weak demand and lower trading activity.
Demand from the finished steel segment also remained weak, with buying activity limited to immediate requirements. Sluggish downstream consumption continued to weigh on procurement, resulting in fewer inquiries and lower trade volumes. The absence of large-volume transactions further dampened overall market momentum during the day.
On the raw material front, pellet prices remained largely stable at around INR 8,900-9,000/t. In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis remained stable at $113/t, and domestic non-coking coal prices at Visakhapatnam port also remained stable at approximately INR 10,450/t.
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
