The government of India has cut the import duty on ferrous scrap to 0%, effective until March 31 2022. This encouraging move will benefit the hundreds of domestic secondary steel manufacturers who rely on imported scrap as a vital raw material.
The long-awaited vehicle scrappage policy has been formally announced under the Union Budget and will be part of the government’s “Self-Reliant India” campaign. This will promote domestic car dismantling and shredding.
Regular scrap buyers in South Asian countries like Pakistan and Bangladesh were taken aback by the sharp increase in ferrous scrap prices through December and into the new year. With the markets having settled down and scrap prices having reduced since then, normal buying activity is expected to resume. The market seems to have found its level but an uptick in prices cannot be ruled out after Chinese New Year.
The unknown factor is how/when China will enter the scrap import market. This could have an impact on availability of US West Coast material and Japanese scrap exports to Asian markets.
Nathani Group of Companies (IND), Vice-President of the BIR Ferrous Division