Imported Scrap to India stable at USD 375-380/MT CFR. Some buying interest seen over rising Sponge iron prices in domestic market.
Scrap offers to India, the world’s third largest importer, remain stable this week with limited trading activities. Trade sources confirm that current HMS (80:20) Scrap offers from Middle East are in the range of USD 375-380/MT CFR Mumbai (in containers). Sources also mentioned that there are offers from European & South American countries at around USD 380/MT, however buying interest seen at USD 375/MT CFR India.
Importer brief that falling Scrap prices in Turkey & Japan, one of the largest Scrap consuming nation have put pressure on global Scrap prices. European & American Scrap suppliers have started showing interest to Indian market. They mention that workable price is at around USD 372-375/MT CFR India for the cargo shipped from Europe or America.
Landed Cost of Imported Scrap is still Higher than Domestic Scrap
A Scrap importer & smelter based in Mumbai highlighted that current cost of importing Scrap is higher than domestic Scrap. He mentioned that importing Scrap from Dubai will cost him around INR 25,500-26,000/MT (basic, delivered to plant), whereas domestic Scrap will cost him around INR 25,500/MT (Basic, Delivered Plant).
However, Sponge iron prices have also gained INR 500-1,000/MT in last few days owing to restricted supply of Iron ore in domestic market. This has forced steel smelters to go for imported Scrap.
Scrap Consumption Country Wise for FY13
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