Sponge manufacturers hold offers in Bellary at Rs 18,000/t (Ex-Works)

There is no stopping of crisis to sponge manufacturers in the state of Karnataka.Mining ban by the Supreme court and power crisis in surrounding state.Margins have hit hard for steel mills in the state.

“Our main market is Hyderabad,which is undergoing a power crisis.Recent hike in power have lowered sponge demand in Hyderabad (Andhra Pradesh).Current offer for pellet sponge stands at Rs 18,000/t (Ex Works Bellary 76-78 FeM) where as offers for sponge iron stands at Rs 19,600/t (Basic, Hyderabad , 75 FeM).”said a sponge manufacturer based in Hospet, Karnataka.