SteelMint spoke to Mr
Amitabh, Senior Vice President at Monnet Ispat on his outlook regarding Indian
Sponge Iron market.
1. What would you say on present Sponge
Iron market?
He feels sentiments are negative but market has to reverse
back anytime soon. Buyers should not depend on unrelated factors for their
decision regarding purchases but look into trades happening in related markets.
2. Where do you see Sponge
Iron prices heading
sometime from now?
Sponge
Iron prices should not come down further. Instead, the moment market sentiments
are positive and buyers feel that there is no bottom line for prices, offers
will jump by Rs 500/MT anytime.
3. How will monsoon impact Sponge Iron market?
According to Mr Amitabh, arrival of monsoon will
cause transportation and storage related issues. Buying should start to take
place because by the time buyers decide to take position, all inventory will
get exhausted and there will be no raw material left. They might have to make
bulk of purchases on first price rise on expectations of further increase.
4. At
what prices is Monnet Ispat offering Sponge Iron?
Offers at Raipur is standing
at Rs 23,000/MT. Whereas, Raigarh price is being quoted at Rs 22,500/MT.
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