Indian sponge iron producers worry about excess demand
Indian sponge iron producers worry about growing demand, especially after steel producers have started to charge sponge iron in their blast furnaces to cope with the imported coking coal crisis. On the other hand, they feel pretty happy because the industry is recording strong growth and this situation is expected to continue in the next few years. However, they are in fear because they may not be able to meet the total market demand. Sponge Iron Manufacturers' Association (SIMA) stated that India produced 8.1 million tons of sponge iron during the 2003/04 fiscal year. Furthermore, sponge iron production is expected to reach 10 million tons in 2004/05 fiscal year. All the big producers like Jindal Steel & Power Ltd, Essar Steel, Vikram Ispat, Ispat Industries, Monnet Ispat and Tata Sponge Iron have expressed their major growth plans. However, it seems that the recent decision of Steel Authority of India Ltd (SAIL) to load up its blast furnaces with sponge iron may create shortage in domestic market. SIMA pointed out that sponge iron sector is not in a position to meet this huge demand and requires from SAIL to create its own sponge iron units to meet its increased demand.