MUMBAI (Scrap Register): Indian ferrous scrap import prices strengthened further, with the monthly average for May up 3.6% on April. Sentiment was greatly boosted by Modi’s general election victory.
Indian scrap import prices continued to rise, with the monthly aver-age of TSI’s containerised shredded index gaining over $14 a ton from April’s pricing (CFR Nhava Sheva port). This represents a 3.6% gain month-on-month, said TSI.
Fears of a correction in the scrap market early in the month did not materialise, with pricing stable despite a lack of finished steel demand. The upcoming election also helped to bring stability to the markets, with both buyers and sellers of scrap material eagerly awaiting the results.
The results of the election, won by the pro-business BJP, injected a vast amount of positivity into the market, with the feeling being that the party will seek to boost growth and investment in the country. Modi has a history of supporting the steel industry in the past, and many in the industry count him as an ally.
The combination of this election result, a lack of sponge iron emanating from the revocation of mining leases and an appreciation of the Rupee against the dollar, all served to push up TSI’s Indian shredded import index by $6/t towards the end of the month. The index finished the month at $411/t CFR port, with material imported from the Middle East, Europe and the US during May.