Essar Steel has recently floated a purchase tender for purchase of 30,000 MT melting steel scrap for its Hazira plant. The last date for bid submission is 15 Sept’17.
This is for the 1st time that the company has floated a scrap purchase tender and it is likely that it is for imported scrap purchase, however it could not be confirmed from the company officials.
Essar Steel is an integrated steel producer with 10 MnT pa capacity in Hazira, Gujarat.
Imported scrap offers to India remain stable – Imported scrap offers to India remained stable this week. Offers for Dubai origin HMS 1&2 are currently stable at USD 315/MT, CFR Nhava Sheva. And for HMS 1&2 from Australia are around USD 320/MT, CFR Nhava Sheva.
Shredded scrap offers from UK and USA are heard to be around USD 345/MT, CFR Nhava Sheva.
Although Indian steel mills are less interested to purchase material at these offers and are heard to prefer domestic scrap which is comparatively cheaper.
Indian scrap imports moved down in H1 CY17 – According to customs data maintained with SteelMint, India imported around 2.23 MnT scrap in H1 CY17 against 3.36 MnT in the same time period last year. Thus imports have come down by 34% Y-o-Y.
In CY16, India imported 5.36 MnT scrap. Major sources for scrap in CY16 were – USA, UK and UAE.
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