Sponge iron manufactures in central India have raised their offers by Rs 200-300/t on anticipation.Weakening rupee against US dollar and short supply of scrap in domestic market should support prices at current levels.
“Shredded scrap from UK or US is trading around $490-495/t CNF Mumbai, delivery after a month.Scrap importers have stopped purchases on unstable rupee.” said a market trader based in Mumbai.
If scrap prices sustain in international market for next few weeks and rupee stays weak against dollar, it is unlikely that sponge prices will fall said another steel trader based in Jalna.
Sponge manufacturers in Raipur have raised offers to Rs 23800-900/t (Up By Rs 200/t), where as Raigarh being quoted at Rs 23100-200/t and Rourkela at Rs 22600-800/t.
Note: All prices Basic
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