Ingot prices recovered by Rs 200-300/MT at few mandis' on falling rupee, said market traders.
“There is already scarcity of scrap in the market, over that fall in Rupee has made imported scrap more expensive. Furnaces are operating at 50% capacity and most of them either use domestic scrap or imported scrap. Also, these days sponge iron is coming from Rourkela, Barbil and Kandla.” said an induction furnace owner based in Mandi Gobindgarh.
Though, demand for finish has not improved yet, but expensive raw material should support steel prices in short term, he added.
Markets improved a bit in other markets as well. Raipur traded at Rs 32,500 (Basic), Raigarh at Rs 32,000 (Basic), Rourkela at Rs 31,300 (Basic).
Sponge iron manufacturers are unwilling to cut offers citing better demand in near term.
Leave a Reply