Imported scrap offers to Indian market have moved up by almost $5-10/t as compared to last week over higher offers from US suppliers. US is the largest steel scrap exporter in the world.
Current offers for shredded scrap from US/Europe are in the range of $375-380/t CFR Mumbai in containers (up by $5-10/t from last week), however demand has been extremely dull owing to falling Rupee against USD (1USD= Rs 59.7). Rupee has depreciated almost 8-9% in last few weeks.
“We have offers from Dubai at $360-365/t CFR Mumbai for HMS -1 in containers, but buying has stalled over depreciating Rupee and any rise in offers will further hamper the demand.Most of us have switched to domestic scrap and DRI .” said a steel mill owner based in western part of India.
Interestingly demand for sponge iron in Indian market has improved in last few weeks looking at fewer scrap imports, many states which were primarily dependent of scrap have opted for sponge iron.
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