Tata, JSW, Arcelor Mittal face challenges in reducing carbon tax impact, says an industry report
Growing importance of circular economy concept with policies being implemented to retain steel scrap exports by Europe, the UAE and others could affect India’s imported scrap availability.
India imports about 10 million tons of scrap steel per annum from Europe, the US, Middle East, Central and South America, according to a report by Wirana Shipping Corp.
On the other hand, Indian producers like Tata, JSW, Arcelor Mittal need more scrap for steel production to reduce carbon tax impact on exports. All these could well increase premium of ship recycled steel and importance of ship recycling in India and across the world.
As it is volatility across local and global steel market has been affecting the pricing and demand due to which ship recyclers are being cautious and their sentiments are subdued this week.
Local plate prices were reduced by US$10/MT as the week ended on 4 Nov, wiping off a US$7/MT increase seen in the previous week which is due to lower demand in India.
On the other hand, imported scrap prices which had reduced by US$5/MT in the previous week has seen a price gain of US$7/MT this week which was due to improved global sentiment.
Billet prices were also under pressure and the local rebar market is also weak. There is thus an overall lack of confidence resulting in lower purchases by secondary steel mills and traders.
“We feel that this is a temporary slowdown, and we should see a revival in local steel demand in next couple of weeks,” said the report.
Due to cautious mood amongst ship recyclers, prices offered by ship recyclers reduced by about US$ 10/LT LDT last week.
“We could expect a cautious mood amongst ship recyclers for the next couple of weeks due to which prices may be under pressure and we may not see a major price increase,” said the report. Fiinews.com
