India: Shredded Scrap Offers from Europe remain at USD 400/MT

Imported Scrap market remains unchanged last week. Sluggish steel demand leads to lower consumption of Scrap.

Imported ferrous Scrap prices remain at the same level on the back of sluggish steel demand, monsoon and power cut in major trading regions.

At present, Europe is offering Shredded Scrap at USD 400/MT CFR Mumbai. However, buying interest is seen at the levels of USD 395/MT. HMS Scrap offers are at USD 380-385/MT for HMS 1&2 and USD 390/MT for HMS 1.

Offers from Middle East are in the range of USD 380-385/MT. Importers faced some quality issues for HMS Scrap from Dubai and this led to fall in its prices.

US domestic market seems to be strong, which encourages them to offer Scrap at higher rate in the international market. US is offering Shredded at around USD 405/MT CFR Mumbai and USD 410-415/MT CFR Chennai. However, no deals were heard to be settled at these levels.

Modi’s Budget 2014-15 released on 10 Jul, 2014 came with no great surprise for steel industry. Despite much hue & cry from industry associations to eliminate Special Additional Duty (SAD) and other duties on Scrap import, there were no such amendments made in the budget.

But, the industry is trying to console itself with the minor changes made in the budget like reduction of import duty on ships used for dismantling from 5% at 2.5%. This reduction in duty is likely to increase the number of ships imported to India for dismantling, thereby improving the availability of domestic Scrap.

Similarly, an increase in import duty on Coke will increase the cost of production through BOF and this will possibly lead to higher imports of Scrap.

Imported Scrap Offers