Sponge Iron prices unlikely to fall sharply- Tata Sponge

Tuesday, Aug 09,

Sponge Iron prices at major mandis’ have corrected by Rs 500-600/MT since last Friday.

However, major manufacturers like Tata Sponge expect that sponge prices are unexpected to fall sharply in near term as supply of raw materials like coal and iron ore remains tight.

“We do not expect sponge iron prices to correct sharply from these levels despite high volatility in the steel markets. There is shortage of the key raw materials like coal and iron ore in the market.” said an official from Tata Sponge Iron ltd

When asked about the partial lifting of the ban on mining activities in Bellary, the official said it will  not have a major impact on the market as the current supply of raw material in Karnataka will just meet 60% of the requirement.