“There is limited room for further correction”- Sponge Manufacturers

Despite high volatility in Indian steel prices, sponge manufacturers believe that there is very limited scope of further correction, looking at iron ore and coal prices.

“Recent hike in iron ore prices by NMDC and private miners in Odisha has put extra cost pressure. Also higher higher coal prices is denting our margins. We do not expect sponge prices should fall more from these levels.” said a sponge manufacturer based in Raipur.

Industry experts feel that only risk for sponge prices falling drastically is higher power tariffs, else expensive iron ore, coal and rising scrap prices in international market should support prices.