“Sponge prices will remain firm on higher raw material cost”- Traders

Sponge iron prices are seen stabilising at current levels for next few months on various factors like

1.  Higher Iron ore prices.

2.  New pricing policy by Coal India, which will make coal prices dearer 

     by about 25%.

3. Falling rupee has made imports of scrap and coal expensive by about 

    7-8%.

4. Lesser imports of scrap, which has improved demand for sponge iron 

    in Punjab and UP.

“Sponge prices are unlikely to fall in near term as demand is good all around the country primarily due to shortage of scrap” said a sponge trader based in Mandi Gobindgarh, Punjab