India: Sponge prices rise across regions but weak demand caps market activity

• Prices show uptick across regions
  
  
• Trade volumes improve slightly d-o-d
  
  

India's sponge iron prices recorded an uptick of INR 100-500/t d-o-d across regions on 13 April 2026. Despite the increase, market activity remained low to moderate, with procurement largely restricted as prices hovered at relatively higher levels.

Demand continued to stay weak, with buyers refraining from bulk purchases and limiting their bookings to immediate, need-based requirements amid a cautious market outlook.

Prices in both the finished and semi-finished steel segments also moved up. However, the price rise did not translate into stronger buying interest, as activity remained subdued and largely need-driven. Weak demand in the finished steel segment continued to cap overall consumption, which in turn weighed on sponge iron procurement and kept broader market sentiment under pressure.

The recorded trade volume stood at around 9,900 t, up from approximately 7,800 t in the previous session, indicating a slight improvement in market activity. However, procurement remained largely subdued, reflecting continued cautious sentiment among participants despite the marginal uptick.

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