By Vibin Antony
Although in recent years we have seen steel demand in India peak around this time, no such rebound has threatened to materialize so far in 2015.
According to TSI, containerized shredded index for Indian imports remained flat at $329 a ton CFR Nhava Sheva off the back of another week of limited trade.
With such low finished steel demand, a number of mills have an excess of stock and are therefore running at around 50% capacity.
More bad news for the Indian scrap import market comes in the form of the continued Rupee weakness and the tightening of credit lines from Indian banks. Alongside suppliers who are reticent to lower prices, the majority of Indian mills are relying on cheaper local scrap.
A light at the end of the tunnel however does come in the form of the Indian Central bank’s decision to lower interest rates yesterday and the potential for a growth-orientated budget to be published by the new government at the end of February.
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
Although in recent years we have seen steel demand in India peak around this time, no such rebound has threatened to materialize so far in 2015.
According to TSI, containerized shredded index for Indian imports remained flat at $329 a ton CFR Nhava Sheva off the back of another week of limited trade.
With such low finished steel demand, a number of mills have an excess of stock and are therefore running at around 50% capacity.
More bad news for the Indian scrap import market comes in the form of the continued Rupee weakness and the tightening of credit lines from Indian banks. Alongside suppliers who are reticent to lower prices, the majority of Indian mills are relying on cheaper local scrap.
A light at the end of the tunnel however does come in the form of the Indian Central bank’s decision to lower interest rates yesterday and the potential for a growth-orientated budget to be published by the new government at the end of February.
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to editor@scrapregister.com)
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