Odisha Miner M/s Serajjudin & Co has cut Iron ore prices by Rs 400/MT w.e.f 16 July'13 that will create pressure on Sponge iron prices in Rourkela (Odisha), Durgapur (W.B) and Raipur (C.G). “Weakening MS Ingot prices since last one week have already slowed down the demand for Sponge iron at this level and further weakening of Iron ore will create a pressure to reduce the price”, said MS Ingot manufacturer based in Raipur.
In contrary, shortage of Scrap in North India continue to make sponge demand firm. “Demand from U.P., Maharashtra, and Rajashthan has increased for last one month.” said a Sponge broker based in Raipur. He further added, “If Sponge pellet price will reduce, Sponge iron price might weaken but only low Iron ore price might not add to pressure on the prices as demand continue to remain good. Consequently, Scrap prices in Bhavnagar climbed up even today by Rs 200/MT that indicates the increase in demand.
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