Indian sponge market is undergoing a major slump over many states affected either by high power costs or power shortage, which has led to less production of ingot and billet.
“Sponge demand has been depressing in 1st quarter which has resulted iron ore miners to cut their offers.Pellet offers are still on higher side and we can see further cuts in coming weeks.” said a big sponge manufacturer based in West Bengal.
Another sponge manufacturer based in Chattisgarh commented that with pellet sponge being sold lower by Rs 800-1,000 per tonne than sponge made iron ore, buyers prefer iron ore over pellets which is still cheaper.
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