Local mills look for DRI as feedstock

摘要

Good demand from the local mills has seen a sharp rise in the ferrous scrap prices. According to sources, these mills are very reluctant to pay high international scrap prices and are increasingly looking to source cheaper alternative feed such as DRI. Although offers from the European countries is there, traders are hoping that problems with Black Sea exports clear up soon. The Indian authorities have been monitoring exports from the Black Sea after some radioactive shipments were found recently. Besides re-rollable scrap from the CIS countries is subject to additional duty in India, forcing the mills to source DRI instead of scrap, because of the price advantage. For example, DRI is on average being sold for about Rs 6,000 (122) per ton dollars delivered ex-plant in Mumbai. European exporters Local sources say that European offers for scarp are as high as 130 per ton dollars on a ciffo basis. In comparison, a shipment of 35,000 tons of scrap was delivered to Essar in mid-April of which 30,000 tons was HMS 1&2 (80:20 mix) sold at 119.70 per ton dollars ciffo. The rest of the load was made up of shredded scrap sold at 125.70 per ton dollars under the same terms.