Sponge prices have witnessed a mixed trend in January.
Initially the market witnessed some strength on supply shortage and soaring
prices of raw materials. However, uncertainties in the market, pulled the
sentiments down as the month progressed.
Given the fact that the domestic sponge iron industry is
facing one of the worst times owing to issues like unavailability and rising
cost of raw materials, most manufacturers were forced to keep their plants
shut.
The domestic sponge iron industry is not even operating at
half the capacity at present, and many units have lowered production by up to
60% mainly due to iron ore shortage.
Sponge iron prices across the country noticed its first
slide after witnessing a long price rally towards the end of the second week of
January as the prices were found to soften by Rs 200-300/MT across India.
Sponge iron prices in Raipur was quoted around Rs 23,800/MT.
With NMDC yet to take a call on revision of its prices and CIL to reconsider its new pricing mechanism, uncertainty still prevails in the Sponge iron market. However, the shortage of iron ore and high coal prices might prompt the sponge iron manufacturers to hold their prices now and hence the
market is expected to remain steady.
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