“Sponge iron prices unlikely to fall sharply”- Tata Sponge

Sponge Iron prices
at few mandis' corrected further by Rs 200-400/MT on Friday.

However, major
manufacturers like Tata Sponge expect that sponge prices are unlikely to fall
sharply in the near term as prices of raw material like iron ore still remains high.

“Sponge Iron
prices will fall in the coming months. But the correction in prices may not be
as steep as it is expected for the finished steel since raw material crisis continues
to hurt profit margin of steel makers.” said an official from Tata sponge
ltd.

On the improvement
of supply of Iron ore he added, “The ongoing crisis of iron ore is expected to
ease within 1 or 2 months after Govt. bodies complete the verification of various
mines. So, a revival in market is expected only by December end or January 2012 onwards.”