Business Line reported that taking cue from the Competition Commission of India’s order against 11 cement companies recently, sponge iron units are planning to approach the Commission against some private iron ore miners.

They allege that these miners, mostly from Odisha, have formed a cartel.

The office bearers of several state level sponge iron manufacturers’ associations are to meet in Delhi shortly to firm up their plan. They will also meet senior officials of the ministries concerned in the union government.

In the past one year, the domestic price of iron ore has been raised at least by INR 1,000 a tonne by these miners. In May alone, the price was hiked by INR 500 a tonne. During the period the international price dropped by at least 30%. More important, an estimated half of the sponge iron units are either closed or are operating much below their capacity.

Source - Business Line

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