According to statements made at the Material Recycling Association of India (MRAI) conference, a stagnation is anticipated in India's demand for iron scrap imports in the near future. Factory and recycling sources indicate that the dormant scrap market is grappling with expectations of weak demand due to increased unsold final steel stocks in Indian factories, weak final steel sales, and upcoming elections.
Sabyasachi Mishra, Business Director of JSW International, stated, "There is an oversupply, and demand cannot keep up with this surplus, creating softness in the market." Simultaneously, the presence of substantial final steel supply in other markets like China is making it challenging for Indian steel producers to compete internationally.
It was reported that India's record iron scrap imports reached the level of 10.47 million mt between January and November 2023. However, it is noted that at the beginning of 2024, iron scrap prices are still below $400/mt CFR, attracting the attention of buyers.
The use of alternative raw material inputs, especially the preference for local Direct Reduced Iron (DRI), is adversely affecting iron scrap imports. Keyur Shah, CEO of Indian facility Mono Steel, mentioned, "India's market will take time to settle because DRI prices are much lower, and scrap prices are much higher."
Indian Steel Minister Jyotiraditya Scindia mentioned that they have prepared a report on green steel and sustainability initiatives as part of India's efforts to achieve carbon neutrality. Scindia expressed their aim to increase the use of iron scrap in steel production, considering it as a potential solution to global challenges such as the Carbon Border Adjustment Mechanism (CBAM).
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