India: Stainless steel scrap imports drop around 35% m-o-m in Feb’23

India’s stainless steel scrap imports stood at 80,146 tonnes (t) in February 2023, down 34% as against 122,231 t in January, according to sources.

Out of total scrap imports, Zurik scrap shipments stood at 15,480 t in the month under review. Imports fell by 26% y-o-y from 107,755 t in February 2022.

Due to subdued demand, high volatility in London Metal Exchange (LME) nickel prices, and rising molybdenum prices, imports inched down. In addition, relatively low demand from the downstream sector also played a key part. Lack of market liquidity has resulted in slowdown in sales and payment recovery.

Series-wise imports

• 300-series stainless steel import volumes stood at 57,624 t in February, down by 39% as against 94,542 t in January.
• 316 series stainless steel imports fell by 23% to 12,189 t in February as against 15,907 t in January.
• 200-series imports stood at 7,077 t, up 2% as against 6,921 t in January.
• 400 series import volumes stood at 11,532 t, down by 14% as against 13,340 t in January.
• The most-traded 304-grade scrap imports decreased by 39% to 28,955 t in February as against 47,562 t in January.
• 430 grade scrap imports decreased significantly by 22% to 6,102 t in February as against 7,822 t in January.
• 201 grade scrap imports fell by 7% m/m to 5,427 t in February.

Country-wise

• US top exporter: The US continued to be the top exporter of stainless steel scrap to India in February at 17,758 t, but witnessed a fall of 23% from 23,008 t in the previous month.

Thailand’s exports were 16,899 t, significantly down from 5,217 t in February, while South Korea’s exports stood at 4,415 t in February against 4,044 t in January.

Overall, the decrease in scrap volumes is indicative of lower finished steel sales and price volatility. Sellers are looking to increase bookings in the coming months to maintain stock levels. This trend is likely to continue until there is an improvement in demand and market liquidity.