Indian sponge prices move up by Rs 100-200/t on high steel futures on NCDEX and ingot prices.It will be too early to say if sponge prices will find strength at these levels.
” Buyers are still reluctant to take position in sponge as they fear, if power prices go up, sponge and scrap prices should come down. Prices are hovering around Rs 23,500-600/t.” said a sponge broker based in Raipur (Chattisgarh).
Industry experts believe that hike in power rates in Chattisgarh, M.P., Tamil Nadu, Andhra, Odisha, Goa and Bihar will keep sponge prices under pressure.
After power prices were hiked in Andhra, Tamil Nadu and Goa, sponge prices in Bellary (Karnataka) corrected significantly (currently trading at Rs 20,200-400/t).
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