Irrespective of the tranquility in finished product market pencil ingot and sponge iron prices have been vibrating in a narrow band of INR 400 per tonne to INR 500 per tonne. Typically minor fluctuation in pencil ingot prices on daily basis is ignorable.
However since the market is traversing beleaguered phase even a small blip becomes not only noticeable but calls for some probe. It is prevalent that most of the sponge iron manufacturers and the downstream furnace owners are in abject misery after the mining clampdown.
Almost 20% of the sponge iron manufacturers eased out owing to iron ore shortage the pencil ingot manufacturers is also crippled. Ironically however the prices of both have refused to flare.
Scratching the surface one is staring at a situation wherein the finished demand is poor and there is utter lack of liquidity in the market. Most of the sponge iron suppliers are insisting on cash payment. Likewise the furnace owners are being compelled to take rigid postures when trust is in deficit.
As a result sponge iron and pencil ingot prices have started correcting. However a positive surge in the dying days of January is expected as primary manufacturers are expected to raise prices further for finished in the penultimate months before closure of financial year when plan accomplishment becomes priority.
Sponge Iron
| Location | Change |
| Kolkata | 0 |
| Raipur | -400 |
| Bellary | 0 |
| Raigarh | -600 |
| Rourkela | -300 |
| Bangalore | 181 |
Change is on 24th January as compared to 23rd January 2012
Change is in INR per tonne
Pencil Ingot
| Location | Change |
| Mumbai | 0 |
| Chennai | 0 |
| Kolkata | 0 |
| Mandi | -300 |
| Raipur | -400 |
| Alang | 0 |
| Kanpur | 0 |
| Rudrapur | 0 |
| Ahmedabad | -300 |
| Ghaziabad | -500 |
| Muzzafarnagar | -363 |
| Hyderabad | 0 |
| Raigarh | 0 |
| Durgapur | -362 |
| Nagpur | -544 |
| Jamshedpur | 500 |
| Jaipur | 0 |
| Rourkela | 0 |
| Bhiwari | 0 |
| Ludhiana | -91 |
Change is on 24th January as compared to 23rd January 2012
Change is in INR per tonne
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