“Sponge iron slips down slightly; no major correction foreseen”- Traders

Offers for Sponge Iron went down by Rs 100-300/MT due to high volatility in the steel market.

” Prices have come down slightly but are unexpected to correct sharply as plants are not holding enough stock with them, ” said a trader based Eastern India.

Producers of sponge iron, pellet and steel have expressed concern over a steep rise in iron-ore prices at last week's e-auctions in Karnataka. The steel mills, which have no alternative for sourcing raw material, are staying back from the auctions or buying very little just to keep their furnaces running.

Prices offered at Raipur were Rs 23700, Raigarh at Rs 23200, Rourkela at Rs 21700 and Jharsuda at Rs 22000. (All basic prices).” said a sponge trader based in Raipur.