Middle Eastern scrap exports dwindle as market grapples with new tax

Export volumes of Middle East-origin heavy melting scrap (HMS) fell this week amid uncertainty over the new value-added tax (VAT) introduced by countries in the Gulf Co-operation Council (GCC), market sources said on Friday January 12.

A 5% rate of VAT has been levied in GCC countries since January 1, and market participants now hesitate to export large tonnages of material without knowing the full implications for their businesses. Offers of Middle East-origin HMS 1&2 (80:20) to India were priced at $340-355 per tonne cfr Nhava Sheva on Friday, sources said. Transaction prices for West...

Published

Lee Allen

January 12, 2018

13:32 GMT

London