“Rising power prices will keep sponge prices under pressure”- Brokers

Sponge iron availability is still critical in major markets of India. With most of sponge iron plants running at low capacity and supply is restricted, said a broker based in Raipur, Chattisgarh. Situation remains similar in Raigarh and Rourkela.

“Problem is not the iron ore, but expensive iron ore, most of sponge plants are closed on high cost of raw material and liquidity crunch. Every small demand should make prices go up.” said a sponge broker based in Durgapur.Only risk is power cuts and rising power prices in states like Punjab,Bengal,Assam,he further added.