Falling imports of scrap have resulted in rise in demand and prices for sponge iron across India, after customs duty and falling Rupee against Dollar has hit the industry hard.
Importers say, it has become un-viable for us to import scrap as domestic scrap and sponge is cheaper.Imports will fall further in coming weeks and dependence on domestic scrap and sponge will rise. Effect has been quite noticeable as sponge and scrap prices have gone up to Rs 700/t in last one week.
Current sponge prices are in range of Rs 18,000-20,000/t (Basic).
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