Steel Market Update

Advisory Bazaar Info Services

Sponge Iron Prices Hit 2-Year High

* Indian sponge iron prices rose to a two-year high of around ₹29,700/tonne in August.

* Higher imported coal costs, limited domestic coal availability and monsoon-related supply disruptions supported prices.

* Thermal coal imports for the steel and sponge iron sector fell 19% in July, following an 11% decline in June.

* Coal prices in key markets, including Indonesia and South Africa, have increased by 14–20% since May.

* With tight coal supplies and elevated input costs, sponge iron prices are likely to remain firm in the coming months.