Sponge iron (DRI) prices in central India up by INR 400-500 per tonne on anticipation that demand will improve post Chattisgarh assembly election.
Sponge iron prices in Chattisgarh, India’s largest sponge iron producing state, which has an installed capacity of around 11 million tonne, have gone up this week owing to up improvement in demand and low inventory position. Experts claim that prices have started moving up over two reasons, first, elections are over and secondly, restricted supply of iron ore from Odisha.
Current offers for sponge iron are at INR 20,500/MT (Ex Raipur) and around INR 19,900/MT (Ex-Raigarh) and sponge pellet being offered at INR 19,600/MT (Ex Raipur) and around INR 18,800/MT (Ex-Raigarh). Market participants mention that demand will go up in coming weeks, as quite a lot of projects which were stalled due to elections and extended monsoon, will start now.
Sponge iron prices in other parts of India have also started heating up and likely to follow the same trend.
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