“Higher power tariffs will impact Sponge Iron prices in Chhattisgarh” – Experts

Recent hike in power tariffs by Chhattisgarh State Electricity Board will impact Sponge Iron prices, say industry experts.

“Power prices have been raised by around 20% from Rs 2.80/Unit  to Rs 3.75/Unit which will be implemented from the 5th of May, 2012. Higher power charges will increase Ingot making cost by Rs 400/MT to 500/MT. 

With slow demand in finished steel, it looks difficult that this hike can be absorbed by the market. Effectively, Sponge Iron prices have to come down in near term,” said Mr Purshottam Agrawal, an Ingot manufacturer based in Raipur.