India’s sponge iron market shifted from an early-month rally to a pronounced late-March pullback as spot inquiries thinned and merchant yards carried ample inventories. Early pre-monsoon buying by secondary steelmakers and rolling mills had supported stronger melt schedules and prompted just-in-time purchases, but that momentum dissipated through March as participants trimmed offers amid information scarcity. Meanwhile, steady domestic production and uninterrupted feedstock inflows removed near-term cost-side support, allowing sellers to discount yard stocks. The net effect was a transition from restocking-driven firmness to a multi-week bearish phase heading into the final week of March for sponge iron.
Demand remained bifurcated across end users. Secondary steelmakers and induction-furnace billet producers maintained the strongest appetite, using sponge iron as billet feedstock to keep lines running ahead of pre-monsoon construction work; in contrast, automotive and white-goods sectors offered limited pull, while exports to Nepal and Bangladesh stayed subdued. As per...
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