With free fall of rupee against dollar, imports of scrap has been very limited in last few weeks. This has led to increase in demand for domestic scrap and sponge iron.
Traders at Mandi Gobindgarh expect prices to stay upwards on limited supply of scrap in the market even if finish sales are not so encouraging.
“There are around 250 induction furnaces in Punjab, which is considerably the largest consumer of imported scrap in India.It requires around 2 lacs tonne of scrap every month. Imports have been negligible from past one month after rupee started falling against USD. Ideally ingot prices should stay strong as dependency increases on domestic scrap.” said an ingot trader based in Mandi Gobindgarh.
Ingot prices in other markets also moved up Rs 200-300/MT.
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