Due to higher domestic scrap availability, imported scrap volumes and prices were both impacted last fiscal. However, sponge prices were more viable than those of domestic scrap, allowing India’s electric furnace mills to fall back on the former rather than latter as feed. For instance, domestic melting scrap DAP Mandi Goindgarh dropped 11% y-o-y in FY’24 to around INR 39,805/t ($477/t) on higher availability. However, the sponge iron index (PDRI) ex-Raipur, was priced even lower at an average INR 28,089/t ($336/t) last fiscal, making it the preferred feed for furnaces.
