Shortage of Melting Scrap has forced induction furnaces based in Maharastra to use more of Sponge Iron and Pig Iron

Maharashtra furnaces, which majorly consume melting scrap for steel making, has switched to sponge iron over lower imports owing to lower imports.

Industry participants highlight that, over couple of months, it is noticed that Sponge Iron consumption has increased. SteelMint learned 60-70% of Sponge Iron and Sponge Pellet is melt along with the 30% mix of Cast Iron, Pig Iron and Scrap to make 1 MT MS Ingot. Earlier it was the other way round.

[su_quote]Some of the manufacturers in Wada (Mumbai) have mentioned that, they have increased their purchases of sponge iron from Raipur and Bellary. However due to lower freight cost, Bellary, is preferred over Raipur sponge iron. They also added current mix to make steel is 30% scrap and rest sponge and pig iron.[/su_quote]

Earlier it was reported that, imports of scrap to India have been consistently down since Rupee has crossed over 60 per USD. India which imported around 7 million tonnes of melting ferrous scrap in 2012-2013 is expected to import 5 million tonnes in 2013-2014.

Cost of Sponge Iron to Steel makers in Maharastra