India: Sponge iron prices strengthen on improved buying interest

• • Firm mill offers support upward price momentum

• • Trade volumes surge on stronger market engagement

India’s sponge iron (DRI) prices increased by INR 100-500/t across regions on 9 March 2026, supported by healthy buying interest in the market. Procurement activity remained moderate to good, with enquiry levels picking up notably during the first half of the day, which helped improve overall market participation and trading momentum. Mills largely maintained their higher offer levels, while buyers actively participated in fresh bookings to secure material.

In the downstream segments, prices of semi-finished and finished steel also moved upward. Buying activity in these segments remained good, which further supported sentiment in the sponge iron market. Improved demand from steel producers led to higher enquiries and stronger engagement between buyers and sellers.

Reflecting the improved sentiment, trade volumes rose sharply to around 20,700 t today, compared to around 9,100 t in the previous session, indicating a significant pickup in market participation and buying interest.

On the cost front, pellet prices remained stable, with Raipur pellets assessed at around INR 10,700/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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