“Indian sponge prices stable on thin volumes; will remain under pressure” – Traders

Indian sponge iron prices remain unchanged on low volumes, after steel futures on NCDEX traded lower by Rs 300-400/t (For FEB contract).

Market players say that sponge prices will be under pressure on continuous recovery in Rupee against dollar (1$=Rs 49.30) and revised coal pricing policy by Coal India.(Which will make low grade coal cheaper).

“It is obvious that strong rupee will give benefit to scrap importers in India, which will certainly increase the supply to starving Induction furnaces.” said a large sponge iron broker based in Mandi Govindgarh.