Imported scrap offers to India have been sticking to same levels as compared to last week. Market participants highlight that shredded scrap offers from Europe are in the range of $415-420/t CFR Indian West Coast whereas HMS 1&2 (80:20) are in the range of $400/t CFR Indian West Coast.
Indian customs statistics show that imports are marginally up in the month of March. According to industry estimates, scrap imports to India will land somewhere in the range of 7 million tons in 2012-2013 compared to 6 million tons in 2011-2012.
“Low sponge iron production and restricted supply of iron ore across India, will prompt secondary steel mills to go for more imports”, said an official from MRAI.
“Low production of sponge iron and weak rupee will hold imported scrap offers firm for next few months. Whereas, chances of rising power tariffs will restrict buying interest at higher levels”, said an importer based in Mumbai.
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