Sponge industries in Karnataka already facing severe crisis of raw material and power cuts by neighboring states. Problems do not seem to be reducing for steel industries in Karnataka.
Iron ore starved state (after Supreme Court bans mining to clamp up illegal mining) are complaining on inferior quality and insufficient supply of iron ore in auction by NMDC.
“Steel industry is under tremendous pressure on unavailability and poor quality of iron ore and power cuts in Andhra and Tamil Nadu. Sponge prices are less as demand is weak from neighboring states.To keep our production intact we have to buy expensive iron ore from NMDC in E-auction.” said a sponge manufacturer based in Bellary.
NMDC auctioned prices of iron ore are as follows
1. 65%= Rs 5050/t
2. 63%= Rs 4470/t
3. 62%= Rs 4370/t
4. 61%= Rs 3440/t
Ex-Auction Site Basic Prices, Forest Tax Extra of 27%
Sponge prices are hovering around Rs 20800-21000/t (Basic) for 78 FeM, where as sponge manufactured from pellets are offered around 19,500/t (Basic), he further added.
Industry is hopeful of positive verdict from Supreme Court on 20th April ,which might allow 'A' category miners to re-start operations soon.
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