Sponge price that was firm a week before see a sharp fall after Ingot manufacturer refuses to buy at high prices. Price corrected by Rs 300-400/MT in Raipur as sponge offered at Rs 19,000/MT (basic) late Saturday evening. Sponge pellet are offered at Rs 18000/MT (basic)
SteelMint learned Sponge manufacturers in Raipur are not willing to continue production or opting to take the plant in maintenance as cost is increasing over low realization. One of the Sponge manufacture says, 'Our coal quota has been reduced by 80%, that is supplied by SECL at concessional price. Earlier 100TPD kiln quota were Qty 2400 MT and now it has been reduced to Qty 1920MT'. He also said, 'due to low quota of coal our cost has increased by Rs 400-500/t and present Iron ore prices are not sponge production viable'
Similarly prices in Bellary and Durgapur also witness a downfall of Rs 100-300/MT. 'Buying interest remain weak as buyer are buying hand to mouth material' said Sponge broker based in Durgapur.
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