Ferrous scrap imports to India rise in FY 2012-2013 by almost 16 per cent, but falling Rupee and current import duty remains a major concern for the industry.
Indian ferrous scrap imports rise in FY 2012-2013 according to data released by Metal Recycling Association of India (MRAI). Imports have gone up by almost 16% compared to last financial year. According to Mr Zain Nathani, Indian representative for MRAI
“Indian ferrous scrap imports in the period from April 1 2012 to March 30 2013 amounted to approximately 6.9m tonnes as compared to around 6m tonnes in the previous 12-month period. However, this total is lower than what most had expected and might signal a slowdown in India’s scrap imports over the coming months. Though April/May prices reflected a soft international scrap market, Indian buyers showed limited demand and interest even at lower price points. Any benefit to Indian importers from a drop in international scrap prices was offset by the devaluation of the Indian rupee by close to 10% against the US dollar. With the international scrap market showing signs of revival for July, Indian scrap consumers face an extremely challenging situation as they are dealing with currency exchange rate issues, import duties on scrap, poor domestic demand for finished steel and potentially higher scrap prices.”
On the regulatory front, the Metal Recycling Association of India (MRAI) has had multiple meetings with the Indian government regarding the withdrawal of the recent notifications regarding the hike in import duties (had been increased to 2.5% on all types of Scrap). The MRAI is hopeful of receiving a positive response in the months ahead.
India is third largest importer of ferrous scrap in the world after Turkey and Korea.