Mumbai,
Scrap imports to India have taken a sharp plunge in the month of June over depreciating currency against USD. According to provisional data scrap imports till 22nd June have been about 2,90,000 tonnes, which had been almost 5,09,000 tonnes in the month of May. India is the third largest importer of scrap after Turkey and Korea. Indian imports of scrap have almost doubled in last 2 years over drop in sponge iron production.
Industry experts highlight that imports have hit hard by falling Rupee (corrected almost 9% in last few weeks against USD) and recent import duty of 2.5% imposed on all type of scraps.They also believe that imports will continue to remain low till Rupee recovers.
“We have not bought a single cargo in last 10 days, though on an average we buy 1000-1500 tonnes every months. Imports are not suitable at the movement due to weak currency.Current offers for HMS are in the range of $360-365/t CFR Nav Sheva.” said a induction furnace based in Mumbai.
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