India: Sponge iron prices soften further amid cautious buying sentiment

• Market volatility weighs on sponge iron procurement
  
  
• Buying stays need-based amid uncertain price direction
  
  

Sponge iron prices across India declined by INR 100-550/t d-o-d on 17 April 2026, as cautious buying behaviour and ongoing market volatility continued to weigh on demand across key regions.

Overall market activity remained subdued, with buyers adopting a wait-and-watch approach amid uncertain price direction. While volatility provided limited support to sellers at times, it was insufficient to drive sustained buying momentum. Most transactions were concluded on a need-based basis, preventing any meaningful recovery in spot prices.

Market participants noted that confidence remains weak, with buyers hesitant to commit to bulk bookings. The prevailing uncertainty around finished steel demand and price stability has been a key factor influencing procurement decisions.

Deals for approximately 7,600 t of sponge iron were recorded, as compared to 4,500 t yesterday. Participants indicated that a sustained recovery in sponge iron prices would depend on stronger support from the finished steel segment. Improved offtake in rebar and wire rod markets is seen as critical to reviving buying sentiment and driving higher procurement activity 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%.

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