Shortage of iron ore due to the state government's crackdown on illegal mining and rise in met coke prices have made state owned Neelanchal Ispat (NINL ,Odisha) to raise its prices higher by 500 per ton.
It was reported that last week steel grade pig iron offered by NINL was at Rs 24700/ton, where as it has raised its offer and made it Rs 25200/ton said traders.
The state accounts for 40 per cent of domestic iron ore production. This, in turn has led to closure of many sponge iron units and to a continuous rise in prices of iron ore, pig iron and sponge iron, say those in the trade.
Though prices of pig iron have increased, demand is still subdued and there is no visibility for any improvement in January, say experts.
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