For the Quarter Ending June 2026
Sponge Iron Prices in APAC
- In India, the Sponge Iron Price Index fell by 5.83% quarter-over-quarter, reflecting weaker downstream demand and higher inventories.
- The average Sponge Iron price for the quarter was approximately USD 263.67/MT, based on assessed trades.
- Sponge Iron Spot Price has softened amid ample domestic supply and cautious mill buying, pressuring short-term offers.
- Sponge Iron Production Cost Trend shows floor support from firmer iron ore and stable coal, limiting price reductions.
- Sponge Iron Demand Outlook remains weak as construction slows and re-rollers restrict purchases, keeping transactional volumes subdued.
- Sponge Iron Price Forecast points to modest volatility and limited downside, constrained by cost floors and seasonal patterns.
- Sponge Iron Price Index movements reflected higher inventories and mixed regional buying, translating into buyer-favourable negotiating conditions.
- Operational ramps at several coal-kilns increased supply, while limited export orders kept domestic availability ample.
Why did the price of Sponge Iron change in June 2026 in APAC?
- Increased domestic kiln output and resumed shipments raised supply, weakening Sponge Iron Price Index in June.
- Soft construction demand and cautious re-roller procurement reduced offtake, weighing on Sponge Iron Spot Price.
- Firmer iron-ore and coal costs provided production cost support, preventing a steeper decline despite weak demand.
Sponge Iron Prices in North America
- Sponge Iron Spot Price softened through April and May before finding some support in June, as domestic DRI (Direct Reduced Iron) production ramped up while EAF mill utilization moderated.
- Sponge Iron Production Cost Trend remained elevated due to sustained natural gas prices (key for DRI production) and firmer pellet premiums, though lower ferrous scrap values provided some relief to integrated cost structures.
- Sponge Iron Price Forecast indicates limited downside ahead, as production cost floors and potential restocking from steel mills could stabilize the Sponge Iron Price Index in Q3 2026.
- Sponge Iron Demand Outlook is mixed; demand from EAF-based steelmakers in the Midwest remained steady, while Southern U.S. mills reduced DRI intake due to softer finished-steel orders and ample scrap alternatives.
- Major North American DRI producers, including Nucor's Louisiana facility and Cleveland-Cliffs' Toledo plant, operated at 75–78% capacity, with inventory builds at port terminals increasing by approximately 10% over the quarter.
- Imported DRI from Venezuela and Trinidad arrived in regular volumes, keeping domestic supply adequate and pressuring the Sponge Iron Price Index as buyers negotiated favorable terms.
Why did the price of Sponge Iron change in June 2026 in North America?
- Prices decreased in June 2026 primarily due to a sharp drop in ferrous scrap prices (down ~7% month-over-month), which made scrap more attractive than DRI for EAF operators, reducing their appetite for sponge iron purchases.
- Additionally, softer finished-steel demand from the construction and agricultural sectors led to lower mill run-rates, directly reducing offtake and pulling the Sponge Iron Spot Price downward.
- Increased domestic DRI production from recently restarted kilns, combined with steady import arrivals, created a supply overhang that pressured the Sponge Iron Price Index further during June.
Sponge Iron Prices in Europe
- Sponge Iron Spot Price showed persistent weakness throughout the quarter, driven by sluggish steel production across Germany, France, and Italy, which reduced mill demand for metallic feedstocks.
- Sponge Iron Production Cost Trend continued to climb as European natural gas prices rebounded in Q2 2026 and carbon allowances under the EU ETS reached new highs, squeezing DRI producer margins.
- Sponge Iron Price Forecast suggests a cautious recovery in late Q3, contingent on a rebound in European construction activity and potential import tariff adjustments on finished steel.
- Sponge Iron Demand Outlook remains subdued; automotive steel demand stayed weak amid EV transition uncertainties, while infrastructure projects failed to gain traction, limiting EAF mill restocking.
- Major European DRI producers, including those in Germany and Italy, reduced operating rates to 65–70% of capacity, while some facilities switched to higher-scrap blends to lower production costs.
- Rotterdam and Antwerp port inventories swelled by 12% over the quarter, as DRI shipments from North Africa and the Middle East arrived consistently, exerting downward pressure on the Sponge Iron Price Index.
Why did the price of Sponge Iron change in June 2026 in Europe?
- Prices decreased in June 2026 primarily due to a significant slowdown in European steel production, with crude steel output falling by 4.1% year-over-year, reducing EAF mill demand for DRI feedstock.
- Ample import volumes from Algeria and Egypt arrived at competitive prices, undercutting domestic offers and pushing the Sponge Iron Spot Price lower as buyers leveraged competing supply sources.
- The stronger Euro against the U.S. Dollar made dollar-denominated DRI imports cheaper in euro terms, increasing competitive pressure on European-produced sponge iron and contributing to the decline in the Sponge Iron Price Index during June.
For the Quarter Ending March 2026
Sponge Iron Prices in North America
- In North America, the Sponge Iron Price Index remained under downward pressure during Q1 2026, reflecting weak steel demand conditions and steady production output from direct reduced iron (DRI) facilities.
- The average Sponge Iron Spot Price showed a soft trend, influenced by cautious procurement from electric arc furnace (EAF) steel producers.
- Sponge Iron Price Forecast indicates a weak-to-stable outlook, with downside risk persisting due to subdued construction and manufacturing steel demand.
- Sponge Iron Production Cost Trend remained largely stable, supported by steady natural gas and iron ore pricing without major supply shocks.
- Sponge Iron Demand Outlook remained moderate, primarily driven by rebar, structural steel, automotive steel components, and general engineering applications.
- Sponge Iron Price Index movement was influenced by stable operating rates and sufficient availability from domestic DRI plants.
- Steel mills continued to operate with controlled purchasing strategies, limiting aggressive spot buying activity.
Why did the price of Sponge Iron change in March 2026 in North America?
- Weak construction and infrastructure activity reduced steel consumption, lowering demand for Sponge Iron feedstock in EAF mills.
- Steel producers maintained high inventory levels, reducing fresh procurement requirements and pressuring the Sponge Iron Price Index.
- Stable DRI output and uninterrupted supply conditions kept market fundamentals loose, contributing to price softness.
Sponge Iron Prices in APAC
- In India, the Sponge Iron Price Index rose by 10.54% quarter-over-quarter, due to tight mill purchasing.
- The average Sponge Iron price for the quarter was approximately USD 280.00/MT, reported across domestic yards.
- Spot liquidity tightened, elevating the Sponge Iron Spot Price as mills competed for limited domestic lots.
- Inventory accumulation pressured the Sponge Iron Price Index, forcing sellers to trim offers and stimulate deliveries.
- Rising freight risks and tighter gas supply squeezed margins, shifting the Sponge Iron Production Cost Trend.
- Downstream restocking before monsoon supported orders, improving the Sponge Iron Demand Outlook for near-term procurement activity.
- Forward curve indicates modest gains then seasonal cooling; the Sponge Iron Price Forecast depends on ore.
- Plant run-rates near capacity reduced import dependence, reinforcing domestic supply dominance within the regional Price Index.
Why did the price of Sponge Iron change in March 2026 in APAC?
- Oversupplied domestic stocks and weak spot inquiries drove downward momentum across regional Sponge Iron markets.
- Higher ore auction premiums, coal linkage raised production costs, reducing margins and limiting price support.
- Unchanged logistics and sustained plant run-rates ensured steady supply, preventing price recovery despite isolated restocking.
Sponge Iron Prices in Europe
- In Europe, the Sponge Iron Price Index showed a soft-to-stable trend during Q1 2026, reflecting weak steel consumption and balanced DRI availability across regional producers.
- The average Sponge Iron Spot Price remained under pressure due to cautious procurement by steel mills amid slow industrial recovery.
- Sponge Iron Price Forecast indicates a stable-to-weak outlook, as steel demand recovery remains gradual across key EU economies.
- Sponge Iron Production Cost Trend remained stable, supported by steady energy input costs and consistent raw material availability.
- Sponge Iron Demand Outlook remained muted, driven by weak construction activity and subdued automotive steel production.
- Sponge Iron Price Index movement was influenced by stable DRI output and limited export-driven demand from European steel mills.
- Steel producers continued controlled procurement strategies to manage margin pressure in downstream steel markets.
Why did the price of Sponge Iron change in March 2026 in Europe?
- Weak construction sector performance reduced steel demand, directly lowering Sponge Iron consumption in steel production.
- High energy costs in European steelmaking reduced production competitiveness, limiting fresh raw material procurement.
- Stable supply of DRI and sufficient inventory levels across mills prevented any upward price pressure.
