Sponge iron (DRI) prices in Indian market remained strong on improved demand and high cost of raw material. Industry participants mention that manufacturers are unwilling to cut offers looking at coming monsoons and relatively high iron ore prices in Indian market.
“Currently prices are stable, also demand has improved. Currently offers are in the range of Rs 17,500-19,500/t (Ex Works) for sponge made from iron ore and pellet sponge being offered in the range of Rs 17,000-18,200/t (Ex Works).
Monnet is offering sponge iron at Rs 18,700/t (Ex Raigarh, Chattisgarh) and Tata sponge at around Rs 18,000-18,200/t (Ex Joda, Odisha).” said a trader based in eastern region of India.
Sponge manufacturers mention that supply of iron ore from Odisha has been hit due to limited availability of railway wagons. Most of the sponge plants are running at “hand to mouth” situation, also coming monsoons will hamper production and prices likely to remain firm.
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