India: Sponge iron prices decline amid weak buying; south bucks trend

• • Trade volumes decline d-o-d amid muted demand

• • Steady regional demand supports southern prices

India’s sponge iron market exhibited a mixed trend on 30 June 2026, with prices declining by INR 50-250/t across most regions amid subdued trade activity in the central and eastern markets. Limited procurement inquiries and subdued finished steel demand prompted sponge iron suppliers to reduce offers to secure bookings. In contrast, the southern market witnessed a price increase of INR 100-200/t, supported by steady regional demand and moderate buying, as consumers continued procurement in anticipation of further price hikes.

Overall, sluggish buying activity in the downstream segment kept market sentiment cautious. According to BigMint’s assessment, sponge iron trade volumes declined to around 8,100 t on 30 June 2026, reflecting subdued market participation.

Raw material costs remained firm, with pellet prices largely stable at INR 8,900-9,000/t. In the imported coal market, South African RB2 (5,500 NAR) prices on a CNF Gangavaram basis increased by $2/t to $113/t. Meanwhile, domestic non-coking coal prices at Visakhapatnam port remained stable at INR 10,450/t.

According to BigMint’s assessment, sponge iron trade volumes declined to around 11,100 t on 30 June 2026, from nearly 17,580 t in the previous trading session, reflecting subdued market participation amid weak buying interest across most regions and limited deal closures.

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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