Most miners in India are operating at 25-30pc of capacity due to weak demand in domestic and export markets. With primary mills in India remaining shut, trades for iron ore remain hit.
Despite the government exemption to the mining sector and relaxation guidelines issued by the Central government to the selective industries including steel, miners are not hopeful for demand to rise from sponge iron units in the near term.
Many primary mills still feel restating in the present market scenario is an unviable option. Secondary mills across India remain closed and are unexpected to start before the month-end, at the minimum.
Merchant miners in India export 50pc of their total production, while the rest they sold in the domestic market. Major consumers of iron ore are sponge iron and pellet manufacturers in Indian markets.
A few integrated steel mills in Central India like Godawari Power and Ispat and Sarda Energy and Mineral, however, have re-started their production partially. These companies have taken necessary precautions in terms of the permission/directions issued by the authorities.