After remaining constant for the past couple of weeks, Iron Pellet prices in Raipur (Chhattisgarh) witnessed a sharp drop today.
Manufacturers said that the demand was decent, because of which they did not consider any change in offers, earlier this month.
Chances were high that purchase volumes will fall with increase in prices.
Manufacturers have lowered Pellet prices by Rs 500/MT at one go and are offering the raw material around Rs 8,500/MT (ex plant) levels, most importantly, due to poor off take of finished products.
Most of the standalone Sponge iron units have opted to take a shut down, while others are operating at minimum capacities in order to remain operational.
Other factors such as Ingot prices that have softened by Rs 400/MT in a week's time and overall demand for raw materials, which is on the minimum side, have impacted Iron Pellet market.
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