Sponge iron prices In Indian market down by Rs 200-300/t W-o-W basis, in line with higher power prices and low demand for finished steel.
However due to limited supply of good quality domestic scrap and high import offers to India, chances are less that sponge prices will notice a major downfall.
The final verdict of Supreme Court regarding resuming of iron ore mining operations by B grade mines has come out in favor of steel industry. A total of 63 mines in B category have been allowed to re-start mining. This will certainly give a reason to cheer for steel plants which are hopeful of increasing production in medium to long term.
Bellary pellet sponge price is trading at Rs 18700/t (Basic) high by Rs 100/t on w-o-w price.
Raipur sponge prices is down by Rs 200/t. Sponge Iron fines is trading at Rs 19,600-700/t and lumps at Rs 19,900/t (basic). “We don’t expect further correction in sponge prices as overall sponge iron production is down as compare to increasing pellet sponge production” said sponge manufacturer in Raipur.
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