Indian sponge prices hold firm;falling rupee a key factor

Indian sponge prices kept steady on Thursday with trading volumes remained thin.Markets also worried on hike in petrol prices, if diesel prices are raised transport cost will go up.

“Markets remained steady on thin volumes, we expect prices will stabilize at these levels. Sponge iron at Rourekla being sold at Rs 21,800/t (Basic) , where as pellet sponge from Tatanagar being sold at Rs 22,500 (Basic).” said a sponge broker based at Rourkela.

Sponge manufacturers in Raipur and Raigarh kept offers unchanged at Rs 23,600 and 23,200 (Basic).

Falling rupee remains a key factor as sponge demand will increase on lesser imports of scrap.