There is nothing much to cheer for steel makers in India.Restricted supply of iron ore, falling DRI prices and liquidity issue have wiped off all the margins.
Falling steel prices in Indian market, followed by weak Rupee have made European exporters to cut their offers up to $20 per tonne this week to India, said market participants.
Sources say that local availability of scrap and sponge iron (DRI) is sufficient and much lower than cost of imports of scrap. With many steel makers preferring to operate at low capacity ,demand for scrap and sponge iron have also decreased.
Current offers from European exporters stand at around $ 380-385/t CFR Mumbai and shredded stands at $ 400-405/t CFR Mumbai.
Imported scrap prices went high when 'sandy' storm affected US scrap supply all across the globe. Now things have stabilized and also prices have moved down in global market.
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