“7th International Recycling Forum” was recently hosted by the Iron Recycling Industry Association held at the Tokyo International Exchange Center in Japan. The spot light remained rising scrap imports of India, Bangladesh and Pakistan.
Ferrous scrap consumption by countries like India, Bangladesh and Pakistan are likely to increase in the coming time. Following this the above mentioned countries are also likely to raise scrap imports in the coming years.
Mr. Imtiaz Uddin Chowdhury of the BSRM group stated “between 2025 and 2030 India, Bangladesh, Pakistan will become a substantial economic superpower, and it will become a major importing country with considerable scrap.”
The per capita iron consumption in the world is 200 to 250 kg per year, but Pakistan is 31 kg, India is 65 kg, and the three countries will catch up with this world average iron consumption in future.
In addition, as a factor for increasing demand for iron scrap in the three countries, the ratio of the small induction furnace to the total crude steel production is Bangladesh 100%, Pakistan 93% and that of India is 50%. It is said as a result, demand for high quality iron scrap is high, so imports will increase.
Rising ferrous scrap imports in India, Bangladesh and Pakistan
Indian importers are seen preferring bulk scrap imports over containerized over lesser freight charges. India’s ferrous scrap imports in CY16 stood at 5.35 MnT. During Jan-Mar’17, India imported 0.88 MnT ferrous scrap.
Bangladesh imported 0.38 MnT ferrous scrap during Jan-Apr’17 against 0.19 MnT in the same period last year. Thus import numbers have doubled in the mentioned time span against last year. The country is experiencing growth in steel capacities and is expected to cross 5 MnT to 2018 against currently at 3 MnT.
Pakistan has also raised its scrap imports from South Africa considerably in last few months and has turned out to be the largest importer of South African ferrous scrap. Pakistan’s rising crude steel capacities is likely to further raise scrap imports to the country.
~Inputs from IRU-MIRU
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