Indian Ferrous Scrap Imports rise by 27% in FY15

Indian Ferrous scrap imports witnessed a rise of around 27% in FY15. Total imports were recorded at 5.2 MnT in FY15 against 4.1 MnT in FY14.

Mining ban in Odisha/Jharkhand, key Iron ore producing states, coupled with falling Scrap prices in global market resulted in a sharp rise in Scrap imports in FY15.

Whereas in FY14, Scrap imports had drastically dropped to 4.1MnT from 6.9 MnT in FY13. This was due to rise in import duty and high availability of Sponge iron in the market.

Statistically, South Africa turned out to be the largest Scrap supplier to India, contributing about 17% of India’s total Ferrous scrap import. It was followed by UAE & UK which contributed around 16% & 15% in the total import respectively.

24% of total Scrap was unloaded at Ludhiana ICD, followed by Chennai (20%) & JNPT port (16%).

Total Crude Steel production in India in FY15

After the end of FY15, total crude steel production in India was recorded at 87-88 MnT in FY15 which is a rise of around 7% from 81-82 MnT in FY14.

Global prices corrected USD 100/MT Y-o-Y

Ferrous scrap prices in global market noticed a sharp fall amid falling Iron ore prices. Scrap import prices to Turkey fell to an extent of USD 245-250/MT and USD 255-260/MT to India (CFR basis) in FY15. Price fall in Steel was a result of falling Iron ore prices which encouraged Chinese steel makers to offer Billets and Finished steel at cheaper rates.

Looking at India’s domestic affairs i.e. resumption of operations of Iron ore mines at Odisha & Jharkhand, it is a fitting outlook that scrap imports in India may fell in coming months.