With recent hike in iron ore prices by NMDC for domestic steel mills, manufacturers feel buying iron ore from NMDC is way expensive than buying from private miners in Odisha.
“There was already a gap of Rs 500-600/t in NMDC and Odisha iron ore prices, after hike NMDC will be dearer by Rs 1300-1500/t. NMDC's iron ore cost us around Rs 9,400-9,500/t (delivered plant to Raipur) where as almost same grade will cost us around Rs 8,000-8,100/t (delivered plant to Raipur).Steel market is under going a bad phase and hike by NMDC was completely unexpected.” said a sponge manufacturer based in Raipur.
Though sponge prices in Chattisgarh will not be affected much as demand is poor and we have option of buying cheaper ore from Odisha, he further added.
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