Power:Indian sponge prices were under pressure over power crisis. Situation looks to be improving on power front as household power consumption goes down during winter and post monsoon.
Iron Ore: Industry sources report that improved supply of iron ore from Odisha and supreme court's decision of lifting mining ban from 18 mines in Karnataka will not be a problem as far as raw material crisis is concerned.
Also increased availability of pellets will leave less scope of iron ore prices to move up. Sponge manufacturers anticipate NMDC to cut iron ore prices in Oct- Dec quarter.
Steel Demand: Indian steel demand improves during October (before festive season), low interest rates will also help more infra projects to start and further add on steel demand.
Risk:Government's decision on raising diesel prices by Rs 5 per liter is a major risk as it will certainly increase road and rail freight charges, resulting in additional cost.
Prices: Prices likely to trade in range bound,industry players do not see much movement either side in short to medium term. Current offers as on 15th Sep 2012
Raipur
Sponge Iron Rs 22,200/t (Basic, Ex Works, 79 FeM)
Pellet Sponge Rs 21,200/t (
Basic, Ex Works, 79 FeM )
Raigarh
Sponge Iron Rs 21,200/t (Basic,Ex Works, 79 FeM)
Pellet Sponge Rs 20,100/t (Basic,Ex Works, 79 FeM)
Rourkela
Sponge Iron Rs 20,300/t (Basic,Ex Works, 78 FeM)
Barbil
Sponge Iron Rs 19,600/t (Basic,Ex Works, 79 FeM)
Durgapur
Sponge Iron Rs 24,800/t (Ex Works,79 FeM, Incld all taxes)
Pellet Sponge Rs 23,800/t (Ex Works,79 FeM Incld all taxes)
Hyderabad
Sponge Iron Rs 19,100/t (Basic,Ex Works,75 FeM)
Pellet Sponge Rs 19,000/t (Basic,Ex Works,77 FeM)
Bellary
Sponge Iron Rs 18,100/t (Basic,Ex Works,75 FeM)
Pellet Sponge Rs 18,300/t (Basic,Ex Works, 78 FeM)
Excise duty of 12.36% Extra on basic prices
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