Indian ministry looks determined on implementation of PSIC norms from 1 July’15, which will make scrap imports, complicated.
Steel scrap import will get impacted after the revised guidelines in the latest Foreign Trade Policy, which mandate photography of every step of scrap being loaded in containers at the origin. Government is determined to implement new pre-shipment inspection certification (PSIC) norms from July 1, 2015, despite several representations made by Metal Recycling Association of India (MRAI) and other associations on extension and modification of norms.
“Implementation of PSIC norms would increase cost of scrap import by 7-8% , adding upto INR 10,000 million pa to the functioning cost of industry in India.” said Mr Sanjay Mehta, vice president MRAI.
Indian steel market is at present experiencing the dullest period, and would neither welcome any kind of increase in offer nor in position to absorb any additional cost.
Offers to India Limited
Implementation of norms have slowed down offers coming to India. Suppliers are resisting trade with India, looking into strict inspection norms. Market participants highlight that there are not many offers from several countries as most of them do not have pre-shipment inspection facilities and the rest, don’t want to undergo the hassle of exporting to India.
Global Scrap Offers
Scrap offers for HMS 1&2 from Middle East are at USD 260-265/MT, HMS 1 are at USD 275/MT and Blue steel at USD 298-300/MT, CFR India. Few even heard HMS (automobile scrap) trading at USD 255-257/MT, CFR West Coast of India (with around 15% G.I & C.I).
Whereas, offers for shredded from Europe were reported to have reduced slightly to USD 288-290/MT and HMS 80:20 remains at USD 268-270/MT, CFR India. Fall in European offers is mainly due to lower response from Turkey and other local markets.
Scrap prices in Turkey have witnessed a fall of USD 10-15/MT in last two weeks. Continuous cheaper offers for Chinese billet and Ramadan festival have impacted the scrap trade here.
Global Scrap prices as on 24 June’15
| Particular/Delivery | Size/Grade | Prices in USD/MT |
Change |
| CNF Mumbai, India | HMS(80:20), Europe | 265-270 | 0 |
| HMS-1, Middle East | 272-275 | 0 | |
| HMS-1&2, Middle East | 260-265 | 0 | |
| HMS-1&2, S.Africa | 260-265 | 0 | |
| Shredded, Europe | 288-290 | – 2 | |
| Shredded, US | 300 | 0 | |
| CNF Taiwan | HMS(80:20), US | 223-225 | 0 |
| CNF Turkey | HMS(80:20), US | 270 | – 15 |
| FOB Rotterdam, Europe | HMS(80:20), Europe | 240 | – 10 |
Source: SteelMint Research
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