Indian mills ‘must buy more imported scrap’ after July tax law change

Low stock levels will force steelmakers in India to ramp up their purchases of ferrous scrap but only after a reform of India’s tax system comes into force next month, market sources told Metal Bulletin on Friday June 23.

Market participants are reluctant to buy and sell imported scrap before India’s general sales tax (GST) comes into force on July 1, 2017, but they will spring into life after the reform is in place, sources said.
“Buying might only happen after July 1 [because of] the GST,” one buyer said.
“One week after [the GST starts], Indians will have to come back into the market because stocks are very low,” one seller said.
“People must start [buying] after the introduction of GST, [but] until then it will remain slow and quiet,” a trader said.
HMS 1&2 (80:20)

Metal Bulletin’s price assessment for containerised imports of HMS 1&2 (80:20) increased by $5-15 per tonne to $270-275 per tonne cfr Nhava Sheva on Friday, compared with $255-270 per tonne cfr one week ago....

Published

Lee Allen

June 23, 2017

16:15 GMT

London