Sponge prices up in South India as Iron ore crisis continues

Sponge prices in Hyderabad moved by Rs 500/t. Sponge made from iron pellets is trading at Rs 21,500-22,000/t (Basic), with sellers unwilling to sell at low levels. “Sponge availability is poor in the region, seller started quoting high as scrap shortage is also building up.” said a manufacturer based in Hyderabad. 

Prices in Bellary also shoot up further as seller quoting Rs 21,000-21,300 per tonne (Ex-Works Bellary). “Shortage of Iron ore and on going political instability is the reason behind the increase.” Sponge manufacturer told SteelMint. 

Prices in Rourkela being quoted at Rs 21,700 (Ex-Works) for 78 FeM with buyers asking for 21500 (Ex-Works). Rungta's offer for sponge iron kept at Rs 21,000++ Ex-Barbil (78 FeM). 

Raipur sponge prices are firm at Rs 23300-500++. “Sponge shortage is always there in Industry due to tightening supply of Iron ore, we can't expect prices going below this level.”