Sponge iron makers seek steps to check iron ore prices

Burdened under high raw material costs, the sponge iron makers have pitched for an urgent need to bring down the iron ore prices in the country.

"There is urgent need to regulate the iron-ore production by the existing miners as they are producing less than their rated capacity to keep the price artificially high that has led to severe crisis," West Bengal Sponge Iron Manufacturers' Association President Gouri Shankar Jain said here today. Besides, the sponge iron industry also wants urgent steps to bring down the iron ore prices by at least Rs 1000 a tonne.

The majority of sponge iron makers belong to West Bengal, Chattishgarh, Odisha and Jharkhand and they have come together to seek the Centre's intervention in the matter.

"The state government of Chattishgarh has sent a memorandum to the Centre to help increase supply of iron-ore at economical price," Chattisgarh Sponge Iron Association Secretary Vijay Jhawar said.

The industry players also alleged that the iron-ore makers - both state-owned NMDC and private miners - are acting like a cartel.

Jhawar however said they have not taken the legal route, neither they have filed any complaint with the fair trade regulator, Competition Commission.

The industry has an annual capacity of 50 million tonnes but currently is churning out only 17-20 million tonnes, city-based Shyam Steel promoter S S Beriwala said.

In the last one year, steel price (long and rebars) has fallen from Rs 35,200 to Rs 27,000 a tonne while iron-ore lump prices has slipped from Rs 4,672 to Rs 3,531 a tonne.