Falling Indian Rupee against US Dollar and an import duty of 2.5% on imported scrap have forced Middle East suppliers to cut their offers to Indian buyers. According to importers offers for HMS 1&2 from Dubai is prevailing in the range of $330-335/MT CFR Mumbai on high sea sales (HSS) basis.
They also mention that, despite falling scrap offers, buying interest has not been very encouraging. On similar lines offers from European supplier is heard to be in the range of $340-345/t CFR Mumbai for HMS 1&2. Although offers from US have been quite stable at around $370/t CFR Mumbai for shredded scrap, due to increased buying from Turkey, world's largest importer.
“There are offers from Dubai at around $335/MT CFR Nava Sheva for HMS 1&2, but looking at current market, there is further scope of correction. Imported scrap at $335/MT will cost us Rs 22,600-22,800/MT delivered to plant at Wada (Mumbai), which is still more than domestic scrap.” said a billet manufacturer based in Wada, Maharastra.
Importer s based in North India are receiving offers from Europe at around $370/MT CFR Mumbai for blue steel (prime material), but buying has been subdued over depreciating currency.
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