Pellet manufacturers in Bellary, Karnataka failed to hold offers on poor demand for sponge iron and concerns over lift on mining ban by Supreme court this week.
“Demand is weak for sponge iron on power cuts in Andhra Pradesh. Also markets are concerned over lift on mining ban, which will certainly improve availability of iron ore. Pellet manufacturers do not want to sit on large inventories. They prefer to sell at discounted price.Current offers for 62-63 % Fe iron pellet stands at Rs 7,000-7,200/t (Ex-Works Bellary) down by RS 200-300/t from last week.” said a market participant.
Another industry trader reported that steel makers in Karnataka are not willing to pay high for iron ore in e-auctions.
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