SC panel will give clearance to 16 mines which comes under A & B category (based on
Central Empowered Committee (CEC) report) ,under the condition that they will be allowed to mine 30-35% of they actual capacity.
Sources say combined capacity of 16 mines is around 24 million tonnes per year and they will be allowed to mine around 8 million tonnes per year.
How will it impact Sponge price?
Sponge prices in Karnataka under going tremendous pressure on low demand and power cuts in surrounding states.Karnataka holds around 25% of Indian sponge production at around 6-7 million tonnes per year.
Despite iron ore crisis sponge manufacturers have failed to hold offers as pellet sponge production has increased in the state.
With 16 mines getting functional next week supply of iron ore will further increase by around 7-8 million tonnes per year, which will put extra pressure on sponge prices.
Industry experts report SteelMint that chances are high sponge prices will fall further in coming weeks.
Leave a Reply