Imported scrap trade in India is not in a healthy state. On one hand falling Rupee against USD and on the other, an import duty of 2.5%, has made life difficult for scrap importers.
Indian scrap imports have been extremely dull in last few weeks over widening disparity between domestic and imported scrap. Steel mills, those who have been using imported cargoes have either switched to domestic scrap, DRI (sponge iron) or imported DRI from Middle East.
According to trade sources current offers for HMS grade scrap from Dubai hovers at around US$335 per tonne CFR Mumbai and from Kazakhstan at around US$335-340 per tonne CFR Mumbai (in containers). However there are not many takers for these cargoes.
According to a scrap importer based in Mumbai ” Induction furnaces are seeking alternatives for imported scrap, which at the moment is not feasible. There are few cargo coming from Middle East, but high offers from US and Europe are almost out of reach for any steel mill in India.“
With rising steel and scrap prices in China and Korea, most of suppliers are eyeing those market, he further added.
Recently Sponge Iron Manufacturers Association of India (SIMA) a governing body which protects interest of sponge manufacturers in India, have shown its concern over rising imports of DRI from Middle East.
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