Sponge (DRI) made out of pellets witnessed first cut
after quite some time in Indian market.Manufacturers made first cut looking at
weak demand and liquidity crunch.
“A big sponge manufacturer based in Jharsugda
cut offers for pellet sponge by Rs 500/t at Rs 20,500 (Ex Works), where as
another big manufacturer offer pellet sponge at Rs 22,000 (Ex Works
Raigarh). Generally sponge made from iron pellets is sold lower by Rs
500-1000/t.” said a broker based at Raigarh.
Market traders report that sponge iron can not be
stored for a long time as it is prone to moisture, with steel demand slowing
down manufacturers have no other option but to sell at discounted prices.
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