This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
MONTHLY REVIEW MARCH 2021
Page No. Content
01
02
India's scrap availability to get a boost as govt introduces new vehi-
cle scrapping policy
South Asian Market Overview (India, Pakistan, Bangladesh)
Imported & domestic scrap prices
Metallics prices (DRI, pig iron) price trends
03
Semi-finished steel (billet) prices
India's domestic steel scrap index
04 Japan, South Korea and South East Asia (Vietnam & Indonesia)
Japan domestic scrap & export market overview
Japanese monthly scrap export tender results
SE Asia imported scrap price trends (Vietnam & Indonesia)
India's scrap availability to get a boost as govt introduces new vehicle scrapping policy
Union Minister Nitin Gadkari has announced a voluntary vehicle scrappage policy in the Lok Sabha on 18 Mar’21 while high-lighting the fact that the measure is in harmony with new technology that promises to usher in a win-win situation for all.
The new policy is expected to boost the manufacturing and services sectors with the aim of generating employment.
Policy objective The central objective of the policy is to reduce the presence of old and polluting vehicles on the roads and to achieve 25-30% reduction in vehicular air pollutants in order to fulfill India's climate commitments, improve road and vehicular safety, achieve better fuel efficiency and formalise the vehicle scrapping sphere. Furthermore, the policy aims to boost availability of low-cost raw materials for the automotive and electronics industries.
Vehicle scrapping criteria The criteria for a vehicle to be scrapped are primarily based on the fitness of vehicles tested at Automated Fitness Centres in case of commercial vehicles and non-renewal of registration for private vehicles. The criterion has been adapted as per the international best practices and standards followed in countries such as Germany, the UK, USA and Japan.
The fitness test and non-renewal of registration are for vehicles that fail to get a fitness certificate. These include...
Commercial Vehicles after 15 years
Private Vehicles after 20 years
Government Vehicles after 15 years A vehicle failing the fitness test or failing to get a registration renewal may be declared as an 'End of Life Vehicle'.
Proposed incentives Incentives to owners of old vehicles for scrapping old and unfit vehicles through registered scrapping centers include:
Road tax rebate (advisory has been issued to all states)i.e. up to 25% rebate in road tax for personal vehicleand 15% for commercial vehicle
5% rebate on the purchase of new vehicles against a scrapping certificate
Waiver of registration fees for a purchased vehicle
The Ministry of Road Transport and Highways will promote the setting up of Registered Vehicle Scrapping Facility (RVSF) across the country. Some of the identified places include Alang in Gujarat, where developing a highly specialized center for scrapping is in the works. Similarly, the government shall promote setting up of Automated Fitness Centres on a PPP model by the state governments, private sector, and automobile companies, etc.
Timeline
The government in the next few weeks is expected to publish
draft notifications, which shall be in the public domain for a peri-
od of 30 days to solicit comments and views of stakeholders.
Apart from attracting additional investments of around INR
10,000 crore and 35,000 crore job opportunities, the policy is
expected to give a big boost to India's domestic ferrous scrap
availability and, in turn, help in achieving India's steel capacity
target of 300 mn t.
India's ferrous scrap demand is expected to increase significantly
in the coming years from present levels of around 30-32 mn t
Turkey country-wise ferrous scrap imports (in mn t)
Feb’21 Jan’21 Dec’20 Feb’20 Mar’20-Feb’21
Total Turkey Imports 2 1.93 2.23 1.78 22.93
USA 0.28 0.19 0.38 0.39 4.12
Netherlands 0.43 0.21 0.40 0.29 3.29
Russia 0.14 0.21 0.19 0.13 2.68
UK 0.04 0.38 0.18 0.22 2.38
Others 1.11 0.94 1.08 0.74 10.46
Turkey statistics: Turkey’s ferrous scrap imports witnessed a slight rise by 4% to 2 mn t in Feb'21, as per data recorded with SteelMint. Turkish scrap imports rose y-o-y in the second month of 2021 and recorded a 12% yearly increase. Netherlands stood the top exporter of scrap to Turkey at 0.43 mn t in Feb'21 regis-tering a two-fold increase m-o-m.
Turkey: Imported scrap prices bottomed-out at
$418/t CFR levels by the end of Mar'21, as
per SteelMint’s assessment. In addition to it a con-
tinuous hike in freight rates left market insiders
confused and few buyers postponed their book-
ings, which resulted in market turning silent.
The national currency of Turkey- Lira crashed to
8.3 against $ after the management reorganized in
the central bank just four months after the previ-
SteelMint has taken due care and caution in compilation of content. Information is just for reference not intended for trading purpose or to address your particular requirement. The content includes facts, views, and opinions are of individuals and not that of the SteelMint management. We and our content licensors do not guarantee or warrant the accuracy, completeness or timeliness of, or otherwise endorse these views, and opinions. SteelMint and its affiliates, or their employees, directors or agents shall not be liable or responsible for any loss or costs or any action whatsoever arising out of use or relying on the spot prices disseminated.