There is something to cheer for Sponge iron manufacturers based in eastern part of India, who had been struggling to make profits in recent time over higher iron ore prices and restricted availability.
With private miners based in Odisha, slashing iron ore prices by up to Rs 500/MT, have given some relief to steel manufacturers.
Manufacturers says that current iron ore prices are at par with sponge iron cost of production and with increasing availability of pellets, there is further scope of correction in iron ore prices. NMDC is yet to declare its August prices.
Sponge iron prices in Indian domestic market remains firm owing to falling imports of scrap (due to depreciated Rupee). Industry participants believe that prices will hold firm in coming weeks too.
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