The Hindu Business Line : Forward booking of non-ferrous scrap halted

FORWARD booking of non-ferrous scrap cargoes for the next 2-3 months has been halted due to temporary suspension of handling of import ICD rail containers carrying iron and steel scrap at JNPT port for two months, trade sources said.

Jawaharlal Nehru Port Trust (JNPT) issued a notification restricting iron and steel scrap meant for containers for ICD stations shipped on or after September 15 or for discharge from vessels calling on or after September 15 at Nhava Sheva port till November 15.

"Though it is clearly mentioned in said Trade Notice (JNPT/CM (O)/TN/04/2270), it is applies only to iron and steel scrap but still there is some misunderstanding at many load ports, and they are refusing to take import cargoes of non-ferrous scrap," Mr Rohit Shah, President of the Bombay Metals Exchange (BME) told Business Line.

India imports huge quantity of non-ferrous scrap, mainly from Dubai, Sri Lanka and European countries.

"We are seeking clarification from the port authorities whether this restriction is only for ferrous scrap and not non-ferrous scrap," he added.

"The non-acceptance of scrap cargo will have serious cascading impact as these are used as main feed for recycling. This will result in import of prime metals from overseas countries at a great cost to the Exchequer."

While the Government's intention to reduce Customs duty on iron and steel to zero level is mainly to neutralise the cascading impact in the domestic market, the ultimate consumer will not get any benefit, he said.

"Major shipping companies have refused to book cargoes for the said period. As a result, prices of virgin metals and scrap metals may go up in the next 2-3 months.

Also, the entire trade may face problem of unnecessary shortage," a leading importer said.

With the current global fuel situation and in its efforts to curb inflation, the Government has completely removed duty on melting scrap and reduced duty from 15 per cent to five per cent on ship-breaking scrap, trade sources said.