“Sponge plants not even operating at half the capacity”- Reports

Indian steel industry facing one of the worst times on factors like unavailability and rising cost of raw materials. Most of manufacturers forced to keep their plant shut on such crisis.  

Some 20 sponge iron units have been shut down since October 2011 and others have
cut short production up to 60 percent as sponge units are just getting 4 MT
(million tonne) iron ore as against the requirement of 12 MT per annum,”
Chhattisgarh Sponge Iron Manufactures' Association chief Anil Nachrani said.

“The future of sponge iron units in the state looks very bleak all of a sudden.
The production has come down to a meagre 2.5 MT per annum from the earlier
figure of around 8 MT per annum,” Nachrani said

Nachrani, who owns Sunil Sponge Pvt Ltd, a sponge unit on the outskirts of
Raipur, said his unit was working at 40 percent of its production capacity
because of recurring raw material crisis.

Source:  The Economic Times