Sponge iron (DRI) prices in Indian market remain same on Friday trading, as most of the plants still operating below capacity, said industry sources. Manufacturers believe, prices are at bottom looking at disturbed supply of iron ore in the country. Few broker also said, 'Sponge Iron delivery to next couple of days are tight on low production and regular demand from Nagpur and local area.'
Raigarh sponge prices subdued by Rs 200 due to low buying from Ingot manufacturers, as demand from U.P and Bihar hammered on price parity. Mostly Raigarh Ingot is sold in Raipur at Rs 29100-200 (payment next day).
Similarly sponge prices in south are down due to major fall in MS Ingot prices by Rs 500.
Expert also believe Iron ore price to drop as its availability will improve in coming days. This follows the State Government’s decision to allow liquidation of stocks of iron ore raised till October 2, 2012, according to sources. An estimated 100 million tonnes of the ore is believed to have piled up in different mines in Odisha ever since the State Government clamped down restrictions on iron ore mining and transportation nearly three years ago following complaints of irregularities.
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