Imported Scrap offers to India stable at USD 375/MT CFR from Middle East. Indian steel makers prefer domestic Scrap & Sponge iron over low prices.

Scrap offers to India, the world’s third largest importer, remain stable this week with limited trading activities. Trade sources confirm that current offers from Middle East are in the range of USD 375-380/MT CFR Mumbai (in containers). However buying interest has been limited from Indian steel mills owing to volatile steel prices and increased availability of Sponge iron in the market.

Sources also confirm that European & American offers are quite high and not acceptable by Indian importers. Moreover, steel makers prefer to wait & watch looking at falling Iron ore prices in global market.

Landed cost of Imported Scrap is still Higher than Domestic Scrap

A Scrap importer & smelter based in Mumbai highlighted that current cost of importing Scrap is higher than domestic Scrap. He mentioned that importing Scrap from Dubai will cost him around INR 25,500-26,000/MT (basic, delivered to plant),whereas domestic Scrap will cost him around INR 25,200-25,500/MT (Basic, Delivered Plant).

Imported Scrap Prices to India

Increasing availability of Sponge will keep a check on Scrap Prices in Domestic Market

Another steel manufacturer based in southern India said that with increase in availability of Sponge iron and  Sponge Pellet in Indian market gives them plenty of option now. Domestic Scrap prices will be under check with rising availability of Sponge Pellet.