Sponge manufacturers based in India prefer high grade iron ore from Rungta, Patnaik, Serajuddin and Essel mines, large miners based in Odisha over iron pellet.With iron ore prices going down in domestic market, steel mills show less interest in buying pellets.
“Undoubtedly iron ore is preferred as first choice for sponge makers as most steel makers are comfortable using it. Also iron ore is cheaper than pellets, most of plants are running on iron ore.We see pellet prices trimming down further in near term.
Current offers for pellet vary in range of Rs 7,200-7,500 across India, where as iron ore same grade offered in the range of Rs 6,500-7,000/t.” said a manufacturer based in West Bengal.
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