“Sponge Iron prices
which had corrected over Rs. 1,500/MT in the last two weeks are likely to
remain under pressure in the medium term on sluggish demand, improved supply of
raw material Iron Ore and increase in production,” said market experts.
“I feel Sponge Iron prices
will remain under pressure as supply of Iron Ore has improved from Odisha. On
an average of about 80,000- 1,00,000 tones of Iron ore is loaded to Sponge Iron
plants located in different parts of India. If we see few months back, it was around
30,000-40,000 tonnes daily. Bigger manufacturers like Bhushan Power and Monnet Ispat
are also running at a decent capacity and other medium and small plants have
also increased their production capacity.” said an industry veteran (not
to be named).
“If demand remains
weak, bigger plants will cut their prices and make sales as they hold their
stocks for a long time,” he further added.
Raipur Sponge Iron price is trading at Rs. 23,000-200/MT (Basic prices,
payment next day) and that of Rourkela is offered with an increase in price by
Rs. 500/MT at Rs. 22,500/MT (Basic prices, payment next day).
Mandi Govindgarh has quoted its Sponge Iron prices at Rs. 30,600/MT
(Including all), low by Rs. 200/MT while Durgapur offers it at Rs. 26,900/MT (Including
all) with Rs. 100/MT more than previous trade. .
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