Sponge manufacturers across heard to have cut production to 40-50% this quarter say market sources on low availability of iron ore and depressed prices in Indian market.
Sponge market has been subdued for long on low availability of iron ore, as most of the mines in Odisha and Karnataka are non operational due to probe against illegal mining by Shah Commission.
Last fiscal sponge iron production was at around 70% this fiscal experts are anticipating it to be 50-60%. Also many small and medium sponge units are on sale due to bad market condition.
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