According to BigMint’s vessel line-up data, major Indian ports received 217,555 tonnes (t) of imported scrap in the first two weeks of January 2024. This marked a 61% m-o-m decrease from 556,559 t seen during the same period in the previous month. It is important to note that these are provisional data and may be subject to revision with future updates. This data does not represent the final volume for the entire month.
Ferrous scrap imports into India usually decrease in January, attributed to the holiday season and the onset of winter, leading to lower construction activity. The decrease in volume was seen in all regions of India. The largest decrease in volume was seen in the east, followed by the north, south, and west. The type of scrap metal that saw the largest decrease in volume was HMS, followed by shredded.
Region-wise arrivals
- Western India:The western region received 138,093 t of scrap in the period under review, up by 38% from 221,592 t recorded in the first two weeks of December. Major ports such as Kandla, Mundra, and Nhava Sheva received 87% of total arrivals in this region. India Coke and Power Pvt. Ltd. and Gautam Freight emerged as the largest buyers with 28,556 t and 24,500 t, respectively.
- Northern India: The northern region received 45,609 t of scrap till the second week of January, a 69% m-o-m drop against 147,563 t in the same period in December. The main arrival points in this region were Kilaraipur ICD, Ludhiana ICD, and Chawapayal (Samrala) ICD. These accounted for 78% of total arrivals in the north. The top importers in this region were Vardhaman, J B Rolling Mills Ltd, Oasis Enterprises Pvt Ltd, and JV International with 3,938 t, 2,848 t, and 1,239 t, respectively.
- Southern India: The southern region received 22,897 t of scrap in the first two weeks of January, a significant drop of 80% from 116,228 t in the corresponding period of December. Chennai Port alone accounted for 71% of total scrap arrivals in this region, amounting to 16,282 t. The top recipients in this region were Jindal Stainless Ltd, JR Metal Chennai Ltd, Metal and Scrap Traders Pvt Ltd, Suryadev Alloys and Power Pvt Ltd with 3,809 t, 2,410 t, 1,948 t, and 1,428 t respectively.
- Eastern India: The eastern region saw relatively lower scrap arrivals compared to other regions, with a mere 10,956 t till the second week of January. Raipur ICD received 4,650 t, followed by Jajpur ICD at 2,763 t. Jindal Stainless Ltd and Godawari Power and Ispat Ltd. received a significant portion of 2,763 t and 2,561 t of scrap in the first two weeks of January.
Grade-wise arrivals
Heavy melting scrap (HMS) constituted the majority share of 44% of total imports at 95,478 t in the period under review, witnessing a drop of 66% as compared to 284,405 t during the first half of December 2023. Mild steel (MS) shredded was at 77,737 t, declining by 32% as compared to 114,310 t during the same period last month, while light melting scrap (LMS) was at 10,318 t, and MS turning scrap, at 5,872 t.
Outlook: Ferrous scrap imports into India are expected to stay low due to sluggish demand in the finished steel market. The availability of domestic scrap and other metallics in the Indian market also contributes to the reduced need for imports. Late December bookings, reflecting buying activities by major mills in previous months, are expected to contribute to this trend, potentially adding nominal volume at the end of January.
