India: Softened sponge iron prices boost market participation 13 Jan

• Weak finished steel demand weighs on prices
  
  
• Lower offers lift trade volumes
  
  

Sponge iron prices across major Indian markets slipped by INR 50-250/t d-o-d on 13 January 2026, weighed down by subdued finished steel demand and weak buying interest. The soft downstream environment continued to cap procurement, keeping trading activity limited across regions. However, a few fresh enquiries were heard in the market, indicating a marginal improvement in sentiment despite the broader bearish undertone.

Sellers reduced offers in an attempt to revive buying activity; however, expectations of further price cuts prompted some buyers to remain cautious. Even so, buying interest was witnessed in the market today, with participants engaging in need-based purchases as sentiment showed mild improvement toward the latter part of the session.

Despite lingering caution, the presence of enquiries and active buying indicated early signs of recovery in mood, even as overall trading conditions remained subdued.

Daily trade volumes were estimated at around 13,500 t, higher than nearly 7,300 t in the previous session, indicating a marginal improvement in participation. On the raw material front, pellet prices in Raipur remained stable at INR 9,600/t ex-works.

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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