Mines owner in Odisha
are also seeking to increase Iron ore prices of size 5mm-18mm by Rs
200-300/MT on account of recent hike by NMDC.
Considering the Odisha
Iron ore material, manufacturers say that 1.8 tons of Iron ore is used to
make 1 ton of Sponge Iron which costs Rs15,000-500/MT.
Sponge Iron will also
include the cost of Coal of Rs 6,000/MT and process cost of Rs 2,500/MT to make
1 ton of Sponge Iron. Therefore, the total cost will come around Rs 23,500-800/MT.
“Considering the
high Iron ore prices and expected increase of prices by Rs 300/MT, Sponge
Iron will trade around Rs 23,500-24,500/MT,” says manufacturer based in Raipur.
However, it will be interesting to see whether Ingot manufacturers accept
the high Sponge Iron prices across other Mandis in North.
Today, Sponge
Iron in Raipur is trading at Rs 24,400/MT (Basic price, payment next day), with an
increase of Rs 200/MT while that of Raigarh is being offered at Rs 23,800
(Basic price, payment next day), higher by Rs 300/MT from previous trade.
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