Imported scrap market remains idle on unresolved PSIC norms; no offers in the market until government notification is issued.
Imported scrap market in India remains in-operative owing to lack of clarification in market by the government regarding pre-shipment inspection norms that would come in effect from 1 July’15. Market participants are awaiting government notification to be issued on the same to resume trade.
Today, DGFT had an assembly with MRAI and other associations for settlement of the debatable PSIC norms. Based on what was heard to be the outcome of the meeting, it is sure that ministry is about to come up with some relaxations for scrap importers.
[su_note note_color=”#e3e3e3″ text_color=”#0b0a0a”]On outcome of the meeting, a source close to industry said, “Ministry has agreed upon some representations made by associations and it may allow imports of processed metal (such as shredded, cut & sheared, turning, boring bundles etc) without any third party inspection, from any overseas scrap yards having necessary radiation detection equipments. It would be considered self-certified material, fulfilling Indian PSI certification norms.”[/su_note]
“Ministry is about to put an official notification in the coming week”, a source added.
What may happen if DGFT officially implements the changes in the norms?
Majority of yards in Europe and USA are self certified yards featuring advanced radiation detection setups. Hence, it would hardly impact the scrap business with India there. But the nations, lacking such setups have to follow strict PSIC norms to continue scrap trades with India. Therefore, offers (proposal) coming from other nations such as Middle East and Africa are expected to slowdown to a noticeable extent.
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