September 08, 2008
Domestic pencil ingots prices surge despite low demand
It is reported that steel ingot prices have moved up by over 17% in the spot market over the last month with iron ore prices touching record highs globally. The price of pencil ingots in the spot market is up from INR 19,300 per tonne in September 2007 to INR 22,600 in October 2007.
The firm prices of pencil ingots are being attributed to shortage of sponge iron and scrap and high prices of iron ore.
Pencil ingot price is high although the domestic demand for rebar is reported to be sluggish due to slow down in construction activity. If rebar demand picks up then ingot prices could remain at higher levels for some time.
