Sponge Iron Production In South Under Pressure

Sponge iron offers in the southern region are likely to come under pressure as buyers in western India may turn towards central and eastern region sponge iron producers where prices have gone down by almost 1,500-2,000 per ton, raising price competitiveness amongst major producers.

- Konica Ghosh

Industry sources, therefore, say the market could see price competitiveness going forward.

Gross sponge iron production in August 2018 decreased 1.6 percent to 2.43 million tons (mt) as against 2.47 mt in the same period last year, according to provisional data from the Joint Plant Committee of the steel ministry.

On a month-on-month basis gross production decreased 2.9 percent from 2.50 mt produced in July 2018.

In the April-August period of 2018-19, gross sponge iron production rose 0.6 percent to 12.42 mt as against 12.34 mt in the same period last year.