Indian ferrous scrap imports have witnessed 3rd consecutive fall in monthly scrap imports in Feb’19. The country imported 456,578 MT ferrous scrap in Feb’19, down 4% M-o-M as against 477,378 MT ferrous scrap recorded in Jan’19, the recent data released by the customs department showed.
On the other hand, scrap imports registered a jump of 36% Y-o-Y in Feb’19 as against 335,471 MT in Feb’18. Despite high imported scrap prices compared to last year, decent finish steel demand in Q1’CY19 might have supported scrap imports against that were seen during Q1’CY18.
Indian scrap imports have shown considerable growth in the last financial year as the country has imported 5.17 MnT in eleven months of FY19 (Apr to Feb) as compared to 4.16 MnT ferrous scrap during the same period of FY18, showing a growth of 25% Y-o-Y. It is expected that ferrous scrap imports in FY19 to reach 5.5 MnT mark as against 4.53 MnT recorded in FY18.
According to WSA, Indian crude steel output remained largely stable at 27.33 MnT in Q1’CY19 which was 27.4 MnT in Q1’CY18. Major Indian steel mills reported a surge in their crude steel output Q1’CY19 in order to achieve their production guidance. While both finish flat steel and long steel exports observed a considerable rise in Feb’19.
UAE remained the largest scrap supplier to India in Feb’19 – UAE exported 110,630 MT ferrous scrap in Feb’19 dropping marginally 1% M-o-M from 111,773 MT in Jan’19. Another top supplier USA witnessed a significant drop of 37% M-o-M, supplying just 17,624 MT in Feb’19 against 27,827 MT in Jan’19. Other top suppliers to India were UK (60,708, down 7%), Singapore (30,695, up 2%) and South Africa (29,517, down 22%) on monthly premises.
Imported scrap prices to India increase in Feb’19 – Average imported scrap prices to India rose in the early Feb’19 following a rising trend in the global scrap market. An average price for Shredded from Europe and UK remained around USD 335/MT, CFR while that for HMS 80:20 at around USD 320/MT, CFR Nhava Sheva. However, prices showed correction towards month end of Feb’19 on account of a drop in Turkey import prices.
UAE origin HMS 1 scrap price also showed a similar trend, rising to USD 333-335/MT, CFR in early weeks before falling to USD 328/MT in last week in Feb’19. While average domestic HMS (80:20) price in Feb’19 stood at INR 25,430/MT, ex-Mumbai, up INR 325/MT (USD 5) M-o-M, GST @ 18% extra.
As per vessel line up data maintained with SteelMint, total bulk scrap imports recorded at 536,771 MT in FY19, up 66% Y-o-Y against 322,940 MT bulk scrap during FY18. The share of bulk scrap to India is estimated to be around 10-12% in total scrap imports.
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