Imported scrap prices to India have corrected by almost $5-7/t over falling Sponge Iron (DRI) and steel prices in domestic market. Domestic prices have corrected by almost Rs 1,000-1,500/t ($18-27) in last few days, resulting in fall in imported prices for consecutive week.
Indian importers heard to have concluded deals for US/UK shredded scrap at around $405-407/t,CFR Mumbai in containers. Some importers also claim that they have offers from Dubai at around $390-395/t,CFR Mumbai, which was at $405/t last week. Though due to weak demand not many are keen to import now.
Another importer based in Western coast have reported to be offering shredded scrap of grade ISRI- 210 from South Africa at around $402-405/t CFR Mumbai, but failed to get substantial booking.
India's dependence on imported have grown significantly on falling sponge iron production. In 2012-2013 India imported almost 7.7 million tons of scrap from regions like USA, South Africa, UK, Canada and Middle East.
Indian domestic sponge iron prices are in range of Rs 17,500-19,000/t (Ex-Works) ($320-350/t) and HMS scrap prices are in range of Rs 22,500-24,500/t (415-450/t).
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