“Sponge Iron prices are unexpected to show any
major correction on account of the critical availability of raw material Iron ore,
weakening rupee and higher scrap prices in the International
market.
demand for Sponge Iron is stable with no major rise or fall and is not expected
to remain range bound with limited correction,” said market sources.
Rupee which is trading at 2-months low of 51.21 against a dollar will make scrap imports expensive and sponge prices might sustain, said market participants.
“We can
anticipate some correction in the prices of Sponge Iron only after monsoon comes
to an end. But even if the prices go down then it will be around Rs. 500/MT.
Tata Sponge is quoting its Sponge Iron prices at Rs. 24,500/MT (Basic prices),” says an official at Tata Sponge.
Raipur Sponge Iron is offered at Rs. 24,000/MT
(Ex-Works, taxes extra). Sponge Iron in Raigarh is being traded at Rs. 23,900/MT (Ex-Works, taxes extra) and Rourkela is offering at Rs. 23,000/MT (All prices
Ex-Works, taxes extra)
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