India: Sponge producers urge NMDC to reduce iron ore prices

The Sponge Iron Manufacturers’ Association (SIMA) has requested India’s leading iron ore miner NMDC to reduce DR-CLO grade lump prices by 15%, SteelMint learnt from sources. Most producers affiliated with SIMA are MSMEs with electric steelmaking facilities that churn out long products. After the outbreak of the second Covid wave in Apr’21, SIMA alleged, iron ore prices have shot up 20% while billet prices have effectively increased by just 4%. Impact on construction activities amid lockdown in many states has also forced sponge producers to seek relief from rising iron ore prices.