Indian Sponge Iron Prices fall by Rs 500/MT

Indian sponge iron prices in domestic market corrected by almost Rs 500/MT owing to weak demand and also falling billet and ingot prices. Trades sources highlight that with sudden rise in sponge iron prices, fall was quite evident.

Sponge prices gained almost Rs 2,500/MT last week after Indian Rupee crashed to 69 levels against USD, on anticipation that rising imports of scrap will come down significantly. Since Rupee has recovered a bit in last few days, sponge prices have come down. Steelmint assessed that sponge iron prices are hovering in the range of Rs 18,000-20,000/MT Ex Works

India is the largest producer of sponge iron in the world with an installed capacity of over 35 MnTA, however with several restriction implied on mining, sponge iron production has been hit hard. According to sponge iron manufacturer's association data, production in FY 2012-2013 stands at around 18-19 million tonnes.