DGFT yesterday in much awaited decision give approval to Raipur to import unshredded scrap at ICD (Inland Container Depot).
The Directorate General of Foreign Trade, Ministry of Commerce and Industry affiliated to the foreign ships given permission to import unshredded scrap (HMS I and HMS I&II) at Inland Container Depot in Raipur.
Presently Raipur import the unshredded scrap from ICD in Nagpur and Mumbai, which are far away from Raipur, and adds significantly to transportation cost for the exporters.
Prima facie the move will be a boon for the sponge iron industry in the state that has 9 million tone capacities. However Raipur viability to import scrap compare to sponge Iron cost valuation is not viable in most of the year situation. However if international price of scrap fall it will be surely a competitive add on advantage to more than 150 furnaces in the state. Present HMS offer to CFR India west coast are at USD 215-220/MT origin US/UK delivery Nov’16.
14 ports have been nominated to import unshredded scrap:
The Directorate General of Foreign Trade in public notice no 38 dated 06 Oct’16 has allowed to import unshredded scrap (HMS I and HMS I&II) by sea ports to the 14 ports till 31 March 2017. These ports are requires to install the container scanner radiation detection portal monitors and other technical security
standards till 31 mar’17 to remain functional thereafter.
These ports are Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao, Mumbai, New Mangalore, Paradip, Tuticorin, Visakhapatnam, Pipavav, Mundra and Kolkata port.
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