Falling demand for finished steel followed by power cuts in major steel producing states of India have forced Sponge prices to come down upto INR 1,200/MT in last one week. Current offers are hovering in the range of INR 19,800- 21,800/MT.
“Demand for finished steel is low owing to unavailability of labors. With temperature soaring high across the country, labors do not want to work. Demand will continue to remain weak during monsoons, which will start by June-end,” said a senior person of an integrated steel plant based in West Bengal.
Speaking to Sponge manufacturers, SteelMint assessed that supply of Iron ore from Odisha still remains restricted (after the Supreme Court had suspended mining operations), but with ample supply of Pellets in the market, Sponge iron prices are coming down.
Sponge iron prices may see restricted fall from these levels.
Current Offers for Sponge Iron in Domestic Market
|
Region |
City |
Grade |
Price |
Change |
W-o-W |
M-o-M |
|
North India |
Mandi Gobindgarh |
78-80 FeM |
25,000 |
0 |
– 600 |
+ 800 |
|
East India |
Rourkela |
78-80 FeM |
19,900 |
0 |
– 1,000 |
+ 450 |
|
Durgapur* |
78-80 FeM |
20,700 |
0 |
– 1,200 |
+ 450 |
|
|
Central India |
Raipur* |
80 FeM |
21,700 |
+ 100 |
– 900 |
– 400 |
|
Raigarh* |
79-80 FeM |
21,200 |
+ 100 |
– 1,000 |
+ 350 |
|
|
South India |
Bellary |
75 FeM |
20,000 |
0 |
– 400 |
+ 200 |
All basic prices for advance payment
ED @12.36%; VAT as applicable
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