There is nothing to cheer for steel manufacturers based in Karnataka. High iron ore prices, low demand for sponge iron and power crisis have dented margins for manufacturers.
“There is very limited high grade iron ore available with NMDC and what ever is available is bid at much higher prices. JSW last bid 63 Fines at Rs 3,700 per tonne (Excld Royalty and Taxes, Ex mines at Karnataka).Current prices prevailing in Karnataka are way higher than offers from Odisha miners, who are offering same grade at Rs 1,900/t.
Most of the plants are not operational and with falling sponge demand many others will stop very soon.” said a steel manufacturer based in Hospet.
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