Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Chhattisgarh chief minister Bhupesh Baghel has urged India’s central government to provide 30pc concession on iron ore for manufacturers in the Bastar region. A letter to this effect was also written to Prime Minister Narendra Modi.  Baghel believes the concessional rate could help steel making units to ramp up production and in turn create employment opportunities in the region.


The rising iron ore prices were affecting the steel industry in Chhattisgarh. The financial stress due to COVID-19 lockdowns along with the rise in raw material price has been heavy on steelmakers’ pockets.


Moreover, the state-owned miner National Mineral Development Corporation (NMDC), the largest iron ore producer in India, has its major iron-ore mining operation in the Kirandul-Bacheli Complex in Dantewada district of tribal-dominated Bastar region.


Baghel states if NMDC provides such concession, mills will be able to recover from the losses.


Chhattisgarh, one of the major producers of sponge iron due to easy access to mines, saw a spike in input cost, giving sponge iron prices a lift. From June 16 to date, the index for sponge iron rose by Rs1,150/mt to Rs16,350/mt del Raipur.


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