Indian imports of scrap to rise over lower sponge iron production in 2012-2013- Survey

New Delhi,

Falling sponge iron (DRI) production across the country due to restricted supply of iron ore will prompt induction furnaces to go for more imports of ferrous scrap in 2012-2013, according to survey conducted by SteelMint.

“It has been observed that scrap imports have gone up sharply as sponge iron units are operating at lower than 50% capacity. In 2011-2012 Indian sponge iron production was 20 million tonnes, when crude steel production was 72 million tonnes. In 2012-2013 sponge iron production should be around same level and crude steel production have gone up to 76 million tonnes (provisional), thanks to government's regulations to check illegal mining”, said an industry expert.

Indian scrap import has touched 6 million (Arp. 2012- Dec. 2012), up by almost 25% from Y-o-Y, he further added.