Indian Ferrous Scrap Imports Rise 8% in H1 2018

According to Mining News Pro -India world’s third-largest scrap importer after Turkey and South Korea has witnessed fourth successive monthly rise in its scrap imports in June since Feb’18. According to customs data maintained with SteelMint, ferrous scrap imports in June’18 hit last 11 months’ high. During the first half of CY18, India imported 2.41 MnT ferrous scrap, up 8% Y-o-Y as against 2.23 MnT scrap imports during the same period CY17.

UAE remained the largest scrap supplier to India – UAE supplied 0.52 MnT ferrous scrap occupying highest 22% share of scrap exports. UAE witnessed growth in scrap exports by 49% Y-o-Y while scrap exports from second largest supplier USA fell down by 15% Y-o-Y to 0.29 MnT occupying 12% share in total scrap imports in India.

Followed by other prominent exporters like UK (0.23 MnT, -18% Y-o-Y), Singapore (0.18 MnT, +100% Y-o-Y), South Africa (0.15, +15% Y-o-Y) and Australia (0.08 MnT, -20% Y-o-Y). Belgium and Kuwait have observed 0.07 MnT exports while Canada, Togo and Malaysia exported 0.06 MnT each witnessing growth in scrap exports to India as against last year. These exporters majorly supply containerized scrap more as compared to bulk vessels.

Port wise - Top Indian ports for ferrous scrap import activities were likely as Chennai (27%), Kandla (20%), JNPT/Nhava Sheva (15%), Ludhiana (15%), Vizag (7%) and Mundra (4%).

Imported scrap prices moved up USD 80-85/MT Y-o-Y in H1’2018 - The average price for USA origin Shredded scrap stood at USD 385/MT, CFR India in H1 2018, up by USD 85/MT as against an average of USD 300/MT, CFR in H1’2017. Likewise, prices for HMS 1&2 from UAE increased to USD 353/MT from an average around USD 275/MT, CFR in H1 2017. Average domestic HMS (80:20) scrap prices in H1’18 stood at INR 25,610/MT, ex-Mumbai up INR 5,240/MT (USD 75) Y-o-Y and INR 25,670/MT, ex-Chennai, up INR 8025/MT (USD 115) Y-o-Y, basic prices, GST @ 18% Extra. Despite of high prices demand for imported scrap remained strong in H1 amid increasing scrap based steelmaking in the country.

Indian scrap imports up marginally in June - India imported 485,466 MT ferrous scrap in June’18, up marginally by 4% Y-o-Y against 466,382 MT scrap imports recorded in May’18. On yearly basis, imports climbed 6% M-o-M in Jun’18 against 457,866 MT ferrous scrap imports recorded in Jun’17. Imports in Jun’18 hit last 11 months’ high as earlier to this, highest scrap imports were recorded at 517,973 MT in Jul’17.

In Jun’18, USA and UAE supplied highest 85,394 MT and 85,354 MT ferrous scrap occupying 18% share each in total scrap imports to India. Singapore stepped up at the third largest exporter’s position supplying 46,605 MT occupying 10% share. UK remained fourth largest supplier and exported 43,863 MT occupying 9% share in Jun’18. Other prominent sources of ferrous scrap were Australia (7%), South Africa (7%), Belgium (3%), Kuwait (2%) and Malaysia (1%) respectively in Jun’18.

During the same month, two bulk vessels berthed at Kandla port comprising total 66,265 MT ferrous scrap which were booked from USA. However, 3 more bulk vessels booked by importers in mid-May have reported as berthed at Indian ports in Jul’18.

Country-wise Indian ferrous scrap imports -