Steel prices in India are trading high on several reasons. Industry experts feel that it is right time for Indian buyers to book scrap cargoes in International market.
Key reasons sought are
1) Strong Rupee:
Thanks to Indian govt for inviting foreign direct investment in various sectors, which has increased supply of dollar and demand of rupee.
Rupee is trading at 18-weeks high at 49 against a dollar ( which was trading at 54 few weeks back).This will make imports cheaper by 7-8% compared to last month.
2) Low scrap prices in International market:
Scrap prices in International market are dull as Turkish mills are out of the market and China has just come back from holidays. It is reported that imported scrap from European countries hovering around $450/t (CFR Mumbai).
High Sponge Prices:
Sponge prices in India are trading nearly at all time high, which is another good reason for importers to take position to take benefit.
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