Expect tight supply of sponge iron in near term- Reports

With Shah commission's probe on illegal mining in Odisha, Karnataka and Goa, sponge manufacturers will certainly face short supply of iron ore in coming weeks said experts.

Also Odisha governments new norms on mining renewal will dent supply of iron ore from merchant miners. This will hurt small and medium plants which are primarily dependent on these miners.

Iron ore supply will remain tight in Karnataka till category 'B' mines get clearance (which is expected to take time).

In near term we can expect sponge iron supply will get hurt in line with raw material crisis.