Saturday, 23 July,
Sponge Iron prices have climbed up by Rs. 1000/MT, in the last 10 days. Experts say the prices are likely to move up further by nearly Rs. 500/MT in the coming week, due to the following reasons:
* In an attempt by the Government to crack down on illegal mining in Karnataka and Orissa, many mines have been nonoperational – which has made Iron Ore scarce
* Increase in Royalty on Iron Ore which will come into effect from August, will definitely push up the prices
* Sky-rocketing Coal prices
“There is acute shortage of sponge iron in the market; big manufacturers are quoting much higher than medium and small sponge manufacturers. Delivery position has been critical at this moment. Prices likely to go up further.” said a sponge trader and broker based in Raipur.
Currently Sponge Iron prices trading at (Basic, Ex Works):
Raipur: Rs 21,800-22,000/MT
Raigarh: Rs 21,300-21,400/MT
Rourkela: Rs 20,500/MT
Hyderabad: Rs 20,700/MT
Bellary: RS 20,700/MT
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