After Indian government imposed custom duty of 2.5% on imported scrap and Indian Rupee sliding to 55 levels against USD have made global scrap suppliers cut their offers by up to $5-6 per tonne.
Current offers for Shredded scrap from US/Europe are in the range of $397-400/t CFR Mumbai, where as HMS-1 from Dubai stands at around $385-390/t CFR Mumbai, down by almost $6/t from last trade.
Another importer based in Mumbai highlighted that he has offers for blue steel scrap from South Africa at $405-407/t CFR India and from Dubai at around $409/t CFR India.
“Indian steel mills have cut their purchases for imported scrap, primarily due to 2.5% customs duty and falling Rupee against US dollar. Also falling steel prices in Indian domestic market are not supporting high offers.
Most of mills based in North and Western India have switched to either sponge iron or domestic scrap.” said an importer based in Mumbai.
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