India’s sponge iron market shifted from an early-month rally to a late-March pullback as inquiries thinned and yards carried inventories. Early pre-monsoon buying by secondary mills supported melt schedules, but momentum faded through March as offers were trimmed. Steady domestic production and feedstock inflows removed near-term cost-side support, allowing sellers to discount yard stocks. The net effect was a move from restocking-driven firmness to a bearish phase heading into the final week. Demand remained bifurcated: secondary steelmakers and billet producers kept appetite high, using sponge iron as feedstock to run lines ahead of pre-monsoon construction; automotive and white-goods sectors offered limited pull, while exports stayed subdued. Near-term outlook is mixed: projected upticks in April of about 3.0%, but forecasts moderate weakening from May onward as monsoon demand slows and inventories remain ample for sponge iron.
