Local scrap prices reduced by US$3/MT.
The Steel Ministry has new rules where even imported raw materials and intermediates for steel need to comply with specifications laid down by BIS (Bureau of Indian Standards), for which plants from where steel is imported need to be certified by BIS (this process takes about 6-9 months), according to a Wirana Shipping Corp weekly report.
This may result in mills having to rely more on local steel raw materials for the next 6-9 months period, which could help increase demand for local steel raw materials, said the report for the week ended 21 June https://www.conexpoconagg.com/.
This restriction is in addition to 12% safeguard duty imposed on steel imports from 21 April 2025 for 200 days could result in steel imports to be halved for the fiscal year 2025-26 https://fieo.org/.
India’s heavy reliance on imported crude oil resulted in the weaking of local currency against the US Dollar this week due to ongoing conflict between Iran and Israel. Rupee traded between US$86.60-$86.93 on 21 June, according to published financial market reports.
“We may expect (scrap) prices offered by ship recyclers to continue at the existing lower levels for now,” said Wirana. https://ted.europa.eu/en/
As it is, low demand in the local steel market and declining prices of the finished steel products dominated the sentiments this week (ended 21 June) https://www.nseindia.com/.
Local scrap prices were reduced by US$3/MT.
The reduced demand for the finished steel products is resulting in secondary mills also reducing purchases of raw materials https://www.bseindia.com/.
“Prices offered by ship recyclers were also reduced by about US$15/LT LDT and we have seen reduced prices being offered even though vessels being circulated for recycling are not many,” said the report. Fiinews.com
