Recovering rupee a threat to sponge iron prices, say scrap importers

Rupee has recovered almost 7 % in last few trading sessions, thanks to good inflows from foreign market.

Few months back when rupee was trading at 54 against a dollar, Indian scrap importers stopped placing orders. Most of the steel mills switched to sponge which made it trade at 15-months high.

“With rupee recovering (hovering around 50 per dollar) and falling scrap prices in International market, Indian importers are back in the market and quite a few deals concluded last week.” said a scrap importer based in Mumbai.

It generally takes 15-20 days to get a shipment, it will be a big threat to sponge market as importing scrap will be cheaper in coming days, he further added.