Indian sponge iron prices likely to remain strong, say experts

Falling rupee, expensive imports of scrap and coal, short supply of iron ore will keep sponge prices high in near term say experts.

“Steel industry is facing one of the worst crisis in recent times,most of the small plants have stopped production and bigger plants are operating at 40-50% capacity said industry experts.”

“There is acute shortage of iron ore for domestic steel plants, after mining department has issued notices to major miners for violating environmental norms. Problem likely to persist for some more time. Till then sponge prices will remain high.” said Mr Agrawal , a sponge manufacturer based at West Bengal.