Sponge prices move up on tight supply of Iron Ore from Orissa

Sponge prices have moved up by Rs 100-300 on anticipation that Iron ore supply will be tight after a week as heavy rainfalls have affected the mining areas in Orissa, and Government has ordered to stop the movement  of cargoes till the situation normalizes in the area.

Some factors which indicate that prices are likely to stay firm are as follows:

1) Extended monsoon which has affected the transportation of Iron ore

2) Rising scrap prices as weakening Rupee makes scrap imports expensive

3) Lower production of sponge across India