Offers for imported Scrap finds support on rising prices in Indian domestic market. Offers were heard at increased prices of USD 5-10/MT from previous levels. Indian Billet prices rose up to INR1,500/MT (USD 25) M-o-M basis.
Scrap suppliers dealing with European material reported offers for HMS 1&2 at around USD 275/MT and Shredded at USD 290-295/MT CIF India, up by USD 5-10/MT from previous trades.
A deal of 500 MT Shredded Scrap (Europe-origin) was confirmed to settle at USD 294/MT CIF Chennai last week. On the other hand, a trader confirmed a deal of Japanese Busheling Shredded Scrap at USD 290/MT, CIF Nhava Sheva.
Scrap from Middle East are offered high at USD 300/MT, CIF India (HMS 1&2), as buyers want quick deliveries in order to offset price volatility.
Trade activities will remain low in India amid upcoming festive holidays starting this Friday.
Import duty kept unchanged in Indian Union Budget
- Indian Scrap importers were disappointed as the government kept import duty on Scrap unchanged at 2.5%.
- Reduced SAD to 2% from 4%, which is said to have least impact on Scrap import business. However this is a refundable tax, and reduction in it was made to address problem of CENVAT credit accumulation.
- Indian rupee gets stronger as an impact of budget which opens ways for a lot of foreign investments. This will make imports cheaper and may encourage Scrap imports.
- Indian government increased peak rate duty on imports of steel to 15% from 10%, however kept effective duties unchanged at 5-7.5%.
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