Some sponge iron producers in Jharkhand’s Ramgarh, with a cumulative market share of around 60-70% in the region, are holding C-DRI offers in the spot market due to the high price of iron ore. A few producers told SteelMint that they would sustain a loss by purchasing iron ore at prevailing rates. Hence most plants in the region have postponed fresh bookings of raw materials stating that operations would continue till iron ore stocks last after which producers would consider switching over to sponge P-DRI, as the handling cost of pellets is lesser than that of iron ore.
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