- Indian sponge iron prices unchanged
- Weak Rupee and falling scrap imports will support sponge iron prices
- Sponge manufacturers expect improved demand in October
Indian sponge iron prices are more or less stable owing to lesser imports of scrap and improved demand. SteelMint assessed that sponge prices in Indian domestic market are hovering in the range of Rs 18,500-20,500/MT (US$ 300-330/MT) (Ex Works).According to trade sources, prices will remain stable till Rupee continues to trade above 60-62 levels.
“With Rupee trading at around 62 against USD, not many mills are interested in securing imported scrap. Most of them are souring sponge iron from Indian eastern region.” said an induction furnace based in Mumbai.
On the other hand, sponge manufacturer's margins have certainly increased in last few weeks, since prices have recovered almost Rs 2,000 per tonne. Manufacturers believe that demand will continue to remain strong in coming weeks, specially after monsoon when construction activity starts in India.
India is the largest sponge iron producer in the world with an installed capacity of 35 million tonne. India's sponge iron production in FY'13 stood at around 18-19 million tonnes.
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