Indian Sponge Iron Producers Urge Govt Action Amidst Raw Material Shortages

New Delhi, Mar 20 (KNN) Indian sponge iron producers have urged the government to impose duties on exports of low-grade iron ore to stave off shortages of the main raw material in the world's second-biggest crude steel producer.

Rahul Mittal, Chairman of the Sponge Iron Manufacturers Association, emphasised the urgency of the situation, urging the government to impose duties on exports of low-grade iron ore.

India, known as the world's largest sponge iron producer, hosts approximately 336 sponge iron plants across the nation.

With an annual production of around 50 million metric tons, sponge iron serves as a primary raw material for secondary steel producers.

Recent data indicates a surge in India's iron ore exports, reaching 32.2 million metric tons in the first nine months of the current fiscal year, a significant increase from the previous year.

However, this rise in exports has led to concerns among sponge iron producers, who have witnessed rising prices and dwindling supplies of essential raw materials.

Rahul Mittal highlighted the sharp jump in iron ore exports, exacerbating the existing shortages in recent months.

Additionally, concerns have been raised since the government's decision in November 2022 to scrap higher export taxes on low-grade iron ore lumps, fines, and pellets, reversing a previous decision made in May 2022.

(KNN Bureau)