Sponge iron (DRI) manufacturers based in Raipur, central part of India, with highest installed capacity of sponge iron offering Sponge made of Iron pellet at around Rs 18,000-18,200/t (Ex Works), where as sponge made from iron ore being offered at around Rs 19,500-19,700/t (Ex Works).
Difference between pellet sponge and sponge iron has widened to almost Rs 1500/t, which used to be Rs 600-800/t few months back. Market participants highlight that primary reason is increasing production of pellets in eastern region and limited supply of iron ore from Odisha.
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