According to Mining News Pro -India world’s third-largest scrap importer after Turkey and South Korea has witnessed stability in its scrap imports in Aug’18. After recording five successive rise in its monthly scrap imports since Feb’18, Indian imports stood almost stable in Aug’18. The country had observed ferrous scrap imports hitting 1 year high in Jul’18.
India imported 499,948 ferrous scrap in Aug’18 which inched down as against 501,556 MT scrap imports recorded in Jul’18. On yearly basis, imports in Aug’18 moved up considerably by 27% Y-o-Y as against 393,792 MT ferrous scrap in Aug’17. Rising scrap consumption in steelmaking could have resulted in increased scrap imports as compared to last year.
UAE remained the largest scrap supplier to India in Aug’18 - UAE supplied highest 79,027 MT ferrous scrap (+17% M-o-M) occupying 16% share in total scrap imports to India. UK stepped up at second largest exporter’s position supplying 64,456 MT ferrous scrap, up 19% M-o-M occupying 13% share.
USA stepped down at the third largest supplier position supplying 60,423 MT ferrous scrap in Aug’18, down 53% M-o-M as against 128,400 MT imports recorded in Jul’18.
Followed by other prominent sources like Singapore (47,204 MT, +23% M-o-M), South Africa (38,039 MT, +34% M-o-M), Australia (34,910 MT, +96% M-o-M) and Togo (13,390 MT, -25% M-o-M) in Aug’18.
Port wise - Top Indian ports for ferrous scrap import activities remained as Chennai (27%), Kandla (20%), JNPT/Nhava Sheva (15%), Ludhiana (15%), Vizag (7%) and Mundra (4%).
Imported scrap prices down while domestic scrap prices up in Aug’18 - The average price for USA origin Shredded scrap stood at USD 355/MT, CFR India in Aug’18 as against an average of USD 370/MT, CFR in Jul’18. Likewise, prices for HMS 1&2 from UAE decreased to USD 330/MT from an average around USD 340/MT, CFR in Jul’18.
Average domestic HMS (80:20) scrap prices in Aug’18 stood at INR 25,360/MT, ex-Mumbai, up INR 722/MT (USD 10) M-o-M as against INR 24,638/MT, basic prices, GST @ 18% Extra. Upward correction in prices resulted in keeping buying limited amid slowdown in activities and depreciated INR against USD in the country.
Indian bulk scrap imports remained nil in Aug’18 & Sept’18 - After witnessing 4 bulk vessels berthed at Indian ports comprising total 126,618 MT ferrous scrap in July, India observed no vessel arrived at berth in two successive months in August and September witnessing nil bulk scrap imports. Moreover, scrap imports remained bounded in Sept’18.
During the first eight months of CY18, India imported 3.42 MnT ferrous scrap, up 9% Y-o-Y as against 3.14 MnT scrap imports during the same period CY17. According to WSA, Indian crude steel production is recorded at 71.14 MnT in Jan-Aug’18 as against 66.70 MnT last year, while it is recorded at 8.84 MnT, up marginally M-o-M in Aug`18.
Country-wise Indian ferrous scrap imports -
| Country | Aug`18 | Jul`18 | % M-o-M Change | Aug`17 | % Y-o-Y Change | Jan-Aug`18 | Jan-Aug`17 | % Y-o-Y Change |
| United Arab Emirates | 0.08 | 0.07 | 14.29% | 0.05 | 60.00% | 0.66 | 0.44 | 50.00% |
| United States | 0.06 | 0.13 | -53.85% | 0.06 | 0.00% | 0.47 | 0.52 | -9.62% |
| United Kingdom | 0.06 | 0.05 | 20.00% | 0.04 | 50.00% | 0.35 | 0.39 | -10.26% |
| Singapore | 0.05 | 0.04 | 25.00% | 0.02 | 150.00% | 0.26 | 0.12 | 116.67% |
| South Africa | 0.04 | 0.03 | 33.33% | 0.02 | 100.00% | 0.21 | 0.18 | 16.67% |
| Australia | 0.03 | 0.02 | 50.00% | 0.04 | -25.00% | 0.13 | 0.17 | -23.53% |
| Others | 0.18 | 0.16 | 12.50% | 0.16 | 12.50% | 1.34 | 1.32 | 1.52% |
| Total | 0.50 | 0.50 | 0.00% | 0.39 | 28.21% | 3.42 | 3.14 | 8.92% |
Quantity in MnT,
Source: SteelMint Stats
