The downtrend in local Indian scrap market has reversed during the past week with prices edging up in reaction to lower import bookings and port arrivals amid reports that the government is mulling options of non-tariff measures to check imports, traders said on Wednesday, August 28.
According to market sources, HMS 80:20 scrap quotations have increased by INR 700/mt to INR 24,200/mt ($337/mt) ex-stockyard at Mandi Govindgarh in northern India. Scrap prices increased by INR 500/mt to INR 23,500/mt ($327/mt) ex-stockyard at Alang in western India.
Scrap imported from the United Arab Emirates (UAE) in containers have remained unchanged during the past week at $290/mt CFR in western India with sources observing that with Indian rupee breaching the INR 72 to a dollar mark during the past week and reports of non-tariff barriers made importing traders cautious in making fresh bookings.
SteelOrbis has been informed by traders that the government is reportedly considering imposing non-tariff barriers to check imports of both aluminum and steel scrap in response to strong lobbying from integrated ferrous and non-ferrous metal producers.
One of the possible non-tariff barriers being considered by the government is evolving standards for ferrous and non-ferrous scrap and that Bureau of Indian Standards (BIS) will be directed to scientifically establish such standards and only material adhering to such standards would be permitted for inward shipments, market sources said.
At the same time, the government has directed its apex policy advisory body, NITI Aayog (National Institute for Transformation of India Commission) to hold industry-wide consultation and prepare a report on trends in scrap imports, prices, impact on checks on imports on secondary steel producers and recommend ‘a path towards acceptable non-tariff barriers”, the sources added.
However, some market sources said that it would be a challenge to arrive any consensus on imposition of checks on scrap imports, considering the government’s stated policy to promote higher scrap based secondary steel making capacities in the country.
$1 = INR 71.79