Sponge iron prices have hit a two-year high as coal costs squeeze Indian producers

India’s benchmark sponge-iron prices reached a two-year high in August as imported coal became more expensive and domestic supply tightened, Reuters reported. Sponge iron is an important feedstock for secondary steel producers and is especially sensitive to coal costs.

The development connects energy, logistics and industrial competitiveness. Higher coal prices can raise input costs for downstream steel, construction and manufacturing. It also highlights India’s continuing dependence on imported coal grades even while domestic coal production is large.