Indian domestic scrap index, which denotes overall movement of scrap prices in India, have inched from 83.37 points to 85.72 points in last 20 days, primarily on improved sponge iron prices in Indian domestic market and fall in imports of scrap.
Market participants mention that sponge iron prices ,which had hit almost 2 years low earlier this month had recovered back recently on fear of monsoon and slight recovery in semi finished prices. Another reason highlighted is fall in imports of scrap after government imposed 2.5% customs duty on imported scrap.
“Scrap prices have gone up in spot market, specially in Mumbai, Ludhiana and Mandi Govindgarh, as imported scrap has become expensive on 2.5% customs duty and fall in Indian Rupee against US Dollar.” said a scrap trader based in Northern region of India.
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