After weeks of sluggish activity, India’s imported scrap demand has picked up pace, driven by optimism in Turkey’s scrap market, a shortage in the northern region, and speculation about a potential import duty on steel, Kallanish observes.

Amid the improved demand, offers to India have risen by $5-10/tonne week-on-week. UK/EU-origin shredded scrap offers are now quoted at $385-390/t, while HMS offers range between $365-370/t, cfr Nhava Sheva.

Turkey, often seen as a benchmark for India’s scrap market, has recently experienced a rebound in scrap prices. This was attributed to political developments in neighbouring Syria and renewed stimulus hopes in China. These factors alerted Indian buyers, prompting an increase in inquiries for imported scrap this week.

Adding to the demand surge is a domestic scrap shortage in Ludhiana, a major scrap-consuming hub in northern India.

The Punjab government’s tax department’s recent crackdown on a large bogus billing scam has disrupted operations across several businesses in the region’s scrap market.

“Both Ludhiana and Mandi, key scrap hubs in Punjab, have been impacted by increased GST [Goods and Services Tax] raids over the past two months. The latest raid in Ludhiana has severely disrupted the domestic scrap supply chain. Since imported scrap purchases were limited in the past two months, the market is now facing a scarcity, which has driven up inquiries for imported scrap,” explains a Ludhiana-based industry source.

Additionally, speculation about a possible import duty on steel has boosted market confidence. If introduced, the duty could lift the domestic steel market, prompting buyers to stock up on scrap ahead of January.

Looking ahead, while Turkey’s scrap demand and prices have eased this week, the winter holiday season in Western countries is expected to tighten scrap supply. At the same time, steady demand from India could create a supply-demand gap, supporting scrap prices.