India’s stainless steel (SS) scrap imports witnessed a marginal rise of 0.5% m-o-m in August 2024 with US maintaining its position as the top supplier. Despite the marginal rise in imports, the volume remained the highest so far in 2024. This was driven by the decline in prices of imported material, drop in LME nickel levels, reducing freight rates and the seasonal demand. Additionally, imports remained robust after reaching an eight-month high in July, 2024.
According to provisional data maintained by BigMint, India’s total SS scrap imports stood at 108,847 tonnes (t) in August 2024, slightly up from 108,465 t in the previous month. However, compared to the previous year, August 2024’s SS scrap imports experienced a decline of 21% from 137,052 t in August 2023.
Among the top 20 stainless steel scrap importers in India, about 60% are long product manufacturers, 25% are traders, and 15% are flat product producers. The remaining importers consist of small-scale mills and traders, each managing less than 300-500 t of scrap in August 2024.
Grade-wise imports
In the scrap import segment in August, shipments of zurik grade fell by 23% m-o-m to 19,354 t. Domestic recyclers separate zurik scrap into 304 scrap and red metals, which are subsequently sold to local producers. Meanwhile, non-zurik cargoes witnessed a 7% increase, reaching 89,184 t.
Looking at the series-wise scrap arrival, imports of the 200 series rose significantly by 25%, increasing from 9,589 t in July 2024 to 11,965 t. Likewise, imports of the 400 series grew by 10%, reaching 17,081 t compared to 15,555 t the previous month. In contrast, imports of the 300 series fell by 7% m-o-m, settling at 71,623 t in August. Additionally, other grades saw a 22% increase, totalling 8,180 t.
In the grade-wise breakdown, imports of the 201 grade experienced a significant increase of 18%. The 316 and 304 grades remained relatively stable, with slight rises of 2% and 1%, respectively. In contrast, the 430 grade saw a modest decline of 1%. Other grades of stainless steel scrap recorded a substantial increase of 30% in August 2024.
What keeps scrap imports on the higher side ?
Better inquiries from mill side: Stainless steel mills are increasingly turning to imported scrap due to a drop in prices linked to falling London Metal Exchange (LME) nickel levels. Additionally, freight rates from major Southeast Asian supplier countries have decreased to around $1,300-$1,500/20-feet container, down from $1,600-$1,700 in July. These countries supply roughly 45% of India’s scrap, contributing to consistent scrap arrival in August.
Drop in LME nickel prices: In August, average LME nickel prices reached $16,100/t, marking a 2% decrease from the previous month’s $16,500/t. This decline was largely driven by increased nickel inventories in LME-registered warehouses. Notably, nickel stocks in these warehouses jumped by 8%, reaching 122,383 t in August compared to 113,814 t the previous month.
Imported scrap price trends: The decline in LME nickel prices contributed to a drop in imported scrap prices to India. BigMint’s assessment showed that in July, the average price for SS 304 scrap decreased by about 1% m-o-m, settling between $1,410/t and $1,420/t in comparison to the previous month’s range of $1,430-$1,440/t. Similarly, SS 316 scrap prices fell to $2,610-$2,620/t from $2,630-$2,640/t the previous month, which further kept scrap imports steady.
Country-wise scrap arrivals
The US, the largest supplier, saw a notable increase of 23% in scrap exports, totalling 17,770 t in August. Exports from Thailand, Malaysia, South Korea, Indonesia, and Saudi Arabia also remained strong, rising by 7%, 17%, 8%, 38%, and 27%, respectively. However, Vietnam experienced an 18% m-o-m decline in exports. Additionally, the arrival of scrap from other countries decreased by 13%.
Port-wise ICD arrival
In August 2024, the highest cargo inflow was observed at Jajpur ICD, which received 14,980 t. Mahagaon ICD followed closely with 14,720 t, while JNPT in the west recorded an inflow of 13,825 t. Additionally, other ports and ICDs together saw a total inflow of 43,410 t during the same month.
Outlook
Looking ahead, stainless steel scrap import volumes are anticipated to see a slight decline due to the upcoming festivities in September. Additionally, global nickel prices on the LME may experience short-term fluctuations, which will need to be closely monitored.
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