Indian steel mills look to secure scrap over anticipated shortage of sponge iron

The iron-ore mining industry in Odisha is facing its worst ever crisis resulting in anticipated short fall in supply of sponge iron in near term.

Steel mills have started hunting for scrap over the reason the crisis in Odisha likely to worsen further tell sources to SteelMint.

“It is expected that there will be a short fall in supply of sponge iron, way things are proceeding in Odisha. Most of small and medium mills are looking for domestic and imported scrap so that they can immune themselves from expected crisis.” said a steel trader.

“Chances are high that sponge prices may go high, we are looking to secure scrap from domestic or international market.” said an induction furnace owner based in Chattisgarh.