Steel ingot F&Os dearer on sponge iron shortage/Iron Ore & Coal Prices Fuel Rise

摘要

STEEL ingot prices have moved up by close to Rs 1,000 in the futures market with hardening of iron ore and coal prices. Ingot price rose from Ks 22,490 a tonne, in the first week of December, to Rs 23,430 in the January contract. Iron ore prices, which moved up by over 25 dollars per tonne in the past one month, have seen record high levels recently. Prices have steadily moved up from 140 dollars a tonne levels in August '07 to current levels. In the domestic market, it is priced around Rs 3,000 per tonne currently. Iron ore is used in both primary and secondary manufacturing of steel. It is the main raw material for sponge iron, which is used to make steel ingots. A shortage in sponge iron is therefore causing steel ingot price to rise.