The domestic sponge iron industry has been hit by a 10 to 15 per cent increase in input costs.
The price of iron ore, a key raw material used in the production of sponge iron, has increased to around Rs 1,000 to Rs 1,200 per tonne, from Rs 700 to Rs 800 per tonne a month ago.
This increase in input cost will have an impact on the margins of sponge iron manufacturers, industry experts said.
S S Bhatnagar, director, Sponge Iron Manufacturers Association (Sima), said sponge iron manufacturers have not been able to pass on the increase in input cost to the consumers.
The requirement of iron ore in 2003-04 is expected to touch about 6.8 million tonne, as against this year
