Sponge Iron (DRI) categorized under Pellet Sponge, offers are up by Rs 200-300/MT in Southern India, over expensive iron ore available in e-auction and production cut by many small units due to widening losses. According to the major pellet manufacturers based in Bellary, raw pellet prices offer has increased. Pellet Sponge 75 FeM is being sold at Rs 16800/MT and seems to continue further at the same rate.
“Some minor producers had shut down there plants because the production cost is very high while the sales (offers) price continues to stable at a lower point in the domestic market. Thus this has resulted in the improved sales of the major players around who are offering their raw material at higher rates.” said a market participant based in Bellary, Karnataka.
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