Indian sponge iron prices noticed its first downfall after witnessing a long price rally. Prices dropped by Rs 200-300/MT across India after Steellong futures contract at NCDEX corrected by over Rs 800 in two days.
The downside for Sponge iron is limited even if Ingot prices have softened in all Mandis' by Rs 400/MT. Shortage of Iron ore and high Coal prices, prompt sponge iron manufacturer to hold their prices. Sponge iron prices fluctuate less frequently as compare to Ingot, were changes are seen almost every day.
” Inquiries have come down in last two days, buyers are unwilling to place orders on uncertainties. But it will be difficult to comment on how deep will be the correction as input costs are increasing day by day.” said a sponge manufacturer based at Durgapur (West Bengal).
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