India's one of the largest Iron ore producing state-Karnataka, contributing almost one forth of the production, is struggling with both low supply of the raw material as well as higher base price fixed by NMDC in e-auction.
“It will take time for things to get in place”, said manufacturers based in the Southern part of India.
On speaking to Mr R K Goyal, MD of Kalyani Steels, at a conference, he mentioned that situation is still critical in Karnataka and it may take a couple of years more, for things to stabilize.
“Currently, the crisis of iron ore shortage in Karnataka has led to higher prices.
Most of the plants are running at very low capacities in the state and many of them are on sale as well, especially, the standalone sponge iron plants,” said Mr Goyal.
“On the other hand, iron ore fines prices in Odisha-India's largest iron ore producing state, is very low as compared to Karnataka prices.
But it is not feasible to transport the raw material from Odisha to Karnataka, he further added.
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