Sluggish demand and limited availability of high grade iron ore in Karnataka have prompted many sponge iron (DRI) manufacturers to cut their production.
“Not many mills are functional on factors like unavailability of high grade iron ore and falling sponge iron prices (which is at 18 months low) in south India. More over, big players like JSW bid high for high grade ore, small players are left with no option but to keep their units shut.” said a steel maker based in South India.
Current offers for pellet sponge are Rs 17,200/t (76 FeM, Ex-Bellary, Basic Prices).
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