“There is limited room for further correction in Sponge Iron prices” – Manufacturers

Indian Sponge Iron
prices have not shown any resistance and had a free fall over the last few days
on falling Steel prices.

Though India’s major Sponge
Iron producers feel that prices have over corrected and room for further
correction is very limited.

“Though Sponge Iron
prices have crashed in the last two to three trading sessions, it is unlikely that
prices of Iron Ore or Coal will fall in the same proportion. We feel that there
is a limited scope for further correction. Prices have corrected over Rs. 1,500/MT
since budget,” said a Steel producer based in Raipur.

An overall view of
Iron Ore prices in domestic market, anticipated hike in Coal prices
and imported Scrap prices shows that such deep correction in Sponge Iron prices
is unjustified.

Sponge Iron at Raigarh
is being offered at Rs. 22,600/MT (Basic price, payment next day) where as
Rourkela trading prices are hovering around Rs. 22,500/MT (Basic price, payment
next day),

 Hyderabad Sponge Iron also saw a correction by
Rs. 500/MT and was offered at Rs. 20,000/MT (Basic price ).