“Higher bids in the latest Karnataka Iron ore e-auctions did not have much impact on Sponge Iron prices as the higher bids are normally placed by bigger players such as Jindal Steel and Kalyani Steel. Smaller players are still not able to benefit much from the e-auctions.
Things are said to improve in July when 49 mines under A category should be able to start operations. Till then the situation will remain same on the supply front. End users demand is also very low. Overall market looks dull at present.
Sponge iron in Bellary is quoted at Rs 21,000/MT and Sponge Iron made from Iron Pellets is quoted around Rs 20,300-20,500/MT in Bellary”, said a trader in Bellary.
In Mumbai, Sponge Iron buyers are reluctant to take position at prevailing prices as demand for finished goods is weak.
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