Sponge iron offers in Karnataka, southern part of India move down by Rs 400-500/t on weak demand and concerns of hike in power prices in neighboring state Andhra Pradesh (which is a major market for Karnataka sponge manufacturers).
“Prices have dropped by Rs 400/t, current offers for 75 FeM pellet sponge stands at Rs 17,500/t (Ex-Bellary, Karnataka). People are concerned on hike in power tariff by Andhra electricity board. It may go up by as much as Rs 1.30 per unit, which will further reduce demand for sponge iron.” said a trader based in Hyderabad.
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