Indian sponge iron industry seems to be getting into a consolidated stage. Restricted supply of iron ore in Indian market, rising power and rising imports of ferrous scrap.There is nothing much to cheer for sponge iron manufacturers based in India.
Data shows that sponge prices have dropped almost 2-years low; experts blame that many sponge manufacturers are using low grade iron ore, which make their quality inferior. Above that rising power tariffs are making induction furnaces to switch to scrap.Current prices are in range of Rs 17,500-19,000/t (basic) which was last seen in Feb-2011
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