Sponge iron prices in central India less likely to rise further

Enquiries for sponge iron have slowed in Raipur & Raigarh due to a sharp drop in output of downstream products in central India's Raigarh over the past two days.

There are about 40-45 ingot and billet manufacturing plants in Raigarh and half of these have reduced output.

Buyers of sponge iron in central India are also holding off purchases anticipating sponge iron prices to fall due to lower demand.

Offers of P-DRI were heard at INR 20,000/t exw in Raigarh & offers in Raipur were around INR 20,000-20,200/t exw.

Sponge iron producers are keen on raising prices in the near-term tracking increase in prices of iron ore and pellet but sluggish demand for billet in the downstream market may curb sponge iron gains.