Indian Sponge Iron prices Stable at $300-340/MT (Ex-Works) 

• Indian Sponge Iron prices stable
• Imported Scrap demand picking up slightly 
• Imports of DRI not viable

Indian Sponge Iron prices, which have gone up by almost INR 300/MT last week has shown some resistance. Prices are quite stable across India and offers are pertaining in the range of INR 18,500-20,500/MT i.e USD 300-340/MT considering Indian Rupee at 61/USD on Ex Works basis.

Sponge Iron prices which were trading at a low of almost 2 years in the month of July 2013 had shown significant jump, after Indian Rupee crashed to 69 levels against USD. Market sources also mention that there is scarcity of imported scrap in the market and most of the furnaces based in Western and Northern India are consuming more Sponge Iron.

Indian Sponge Iron Prices

Market participants mention that Sponge prices may come under pressure if Rupee continues to appreciate and imports of Ferrous Scrap become viable.

However Indian sponge iron industry is operating at 50% capacity, owing to low supply and high prices of Iron ore in the domestic market.