Imported scrap offers to Indian market continue to fall after government imposed custom duty of 2.5% on imported scrap and Indian Rupee sliding to 55 levels against USD.
Current offers have come down by another $5-7/t from last week's offers, but this time buyers have concluded some deals as they feel further downside is limited.
Current offers for Shredded scrap from US/Europe are in the range of $388-391/t CFR Mumbai, where as HMS-1 from Dubai stands at around $380/t CFR Mumbai, down by almost $7/t from last trade.
According to market participants prices look to have almost bottomed out and further correction has limited scope as Turkish mills have returned back to the market looking at attractive prices.
“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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