Ferrous scrap imports to India continue to remain down on depreciated Indian Rupee and high offers in global market

India, which used to be third largest importer of Ferrous scrap in the world seems to be losing its charm this fiscal year (2013-2014) owing to weak Rupee, import duty and high offers in global market. India imported over 7 million tonnes of ferrous scrap in 2012-2013, which is expected to come down to 5-6 million tonnes this fiscal according to experts.

[su_quote]”There is hardly any trade taking place, primarily due to high prices in global market and secondly due to weak Rupee, which had made imports not viable at the moment.

There are few deals done at US$ 390/MT CFR Vizag port (India’s east coast) for shredded scrap from U.S. Handful of deals were done at around US$ 376/MT CFR Indian west coast for good quality scrap from Europe. Not many importers or steel mills are keen to stock looking at cheaper availability of scrap and sponge iron in domestic market” said an importer based in Mumbai, India.[/su_quote]

Another importer based in India’s west coast also mentioned that trade activities have been extremely low. There are offers from Middle East at around US$ 355-365/MT CFR Mumbai, but buying interest is quite low.

He also mentioned that landed cost of imported scrap would be around INR 25,000/MT (excluding CVD and SAD) at Mumbai where as domestic scrap is available at around 24,000/MT (Excluding Excise and VAT).