There is no stopping in fall in Indian sponge iron prices, which failed to resist and hit 2-1/2 years low.
Industry experts blame higher power charges, increasing imports of scrap and HBI.
“Indian sponge iron industry seems to be getting into a consolidated stage.
Restricted supply of iron ore in Indian market, rising power and rising imports of ferrous scrap.
There is nothing much to cheer for sponge iron manufacturers based in India.
On the other hand iron ore prices are at same levels from last many months.” said a manufacturer based in West Bengal.
Data shows that sponge prices have dropped almost 2-1/2 years low; many other industry experts also feel that with increasing pellet availability for merchant sale is a reason for fall in prices.
Above that rising power tariffs are making induction furnaces to switch to scrap and HBI.
Current prices are in range of Rs 17,500-18,600/t (basic) which was last seen in November-2010.
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