Sponge
Iron is mainly used as a raw material for speciality steel
as well as substitute for scrap. Made from iron ore, sponge
iron in itself is not used. It is further processed to make
wrought iron. The rise in price of scrap and other factors
have led to the increase in the use of sponge iron for making
high quality steel.
Global Situation
The global production of sponge has risen sharply during the
last two decades. From 7.8 million ton per annum, the global
production has jumped to 43.2 million ton in 2000. Currently,
the production is around 50 million ton per year. India is
the global leader of sponge iron output with annual capacity
of 16 million ton. Iran, Venezuela and Mexico are the other
leading producers.
Fortune of global sponge iron is closely linked with steel
industry. As global steel industry is projected to grow by
nearly 7 percent in 2007, sponge iron would also grow at a
faster clip. Cost of natural gas and iron ore are the major
factors that shape the price of sponge iron in domestic as
well as global markets.
India\'s Forex reserves fell to $311.79 billion, down by $691 million for the week ended June 27 as against $ 312.481 billion in the last week, RBI said in its weekly report.
Forex dealers said the rupee drew support from a firm trend in local equity market but was still under pressure due to fresh surge in crude oil prices.
Indian rupee opened trading in a positive note Friday as investors covered their short positions but with oil holding above $145 a barrel and shaky stock markets raising prospects for more capital outflows, gains may be limited.
Gold
