Indian domestic sponge iron (DRI) prices have been hold firm from last week on restricted supply of iron ore from states like Odisha and Karnataka. Current offers vary in range of Rs 19,000-20,000/t for FeM 78-80, Ex-Works.
Although industry experts fear that proposed hike in power prices in many states will reduce demand for sponge iron and might not support prices in near term.
“There are proposed hike in power prices in AP, Odisha and Chhattisgarh. If it gets implemented, sponge demand will come down certainly”, said a sponge manufacturer based in Southern India.
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