Sponge iron industry await new govt to kick-start economy
According to experts, in the last four years, production has come down substantially as about 50% of sponge iron units are closed. Even in the existing units, the production has come down to half its original capacity.
According to officials, encouraging policy rollout by the new government could help the domestic sponge iron producers.
The sponge iron is used by the steel industry and finds application in both flat as well as long steel product segments. It is also used in a big way in infrastructure projects and construction industry. India is one of the largest producers of sponge iron in the world.
According to Sponge Iron Manufacturers Association data, India has a total installed capacity of 37 million tonne. A lot depends on sale of finished steel in the market. Until the government does not bring in some new policy to push up the demand for finished steel, we cannot see an upward movement. According to the news report, most sponge iron producers said that once requirement for large long term construction projects comes in from the new government, the steel industry will prefer domestically produced sponge iron to imported scrap steel.