Sponge iron prices spiked up in southern India (which contributes around 25% of total sponge production) by Rs 500-700/t on short supply of iron ore.
Current offers for 75 FeM pellet sponge stand at Rs 18,500/t, where as 78 FeM at Rs 19,000/t (ex- works, Bellary).State is starved from the key raw material on measures of government to control illegal mining, resulting in closure of several mines.
Though there is some improvement as 18 'A' grade mines already got clearance and another 40 plus 'B' grade mines are in process.
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