Sponge iron demand subdued in South India on power crisis- Manufacturers

On going power crisis in states like Tamil Nadu , Andha Pradesh and Kerala has subdued demand for sponge iron from Bellary.With furnaces running at 40-50% capacity demand for sponge have come down significantly,said sponge manufacturers.

Also expensive iron ore in e-auction and high pellet prices have resulted in cut in sponge production.”We are producing sponge from pellets which is offered at Rs 19,500 (78 FeM, Ex-works) to furnaces based in Maharastra and Gujarat.” said a sponge manufacturer based in Koppal.