Indian Ferrous Scrap Imports Fall Marginally in FY18

India world’s third-largest scrap importer after Turkey and South Korea witnessed marginal fall in its scrap imports for the financial year 2018. As per customs data, India imported 4.53 MnT ferrous scrap in FY18 (Apr’17-Mar’18), down 4% as against 4.73 MnT ferrous scrap imports recorded during FY17. High global scrap prices and ample availability of domestic scrap and sponge iron resulted in fall in scrap imports.

Top Indian ports for ferrous scrap import activities remained Chennai (27%), Kandla (20%), JNPT/Nhava Sheva (15%), Ludhiana (15%), Vizag (7%) and Mundra (4%).

Imported scrap prices increased sharply in FY18 – The yearly average prices for USA origin Shredded scrap stood at USD 340/MT, CFR India, up by USD 78/MT against an average of USD 260/MT, CFR in FY17. Likewise, prices for HMS 1&2 from Middle East increased to USD 320/MT from an average around USD 245/MT, CFR in FY17. Average domestic HMS (80:20) scrap prices at Mumbai and Chennai in FY18 remained at of INR 21,985/MT (+INR 4,950/MT Y-o-Y) and INR 20,940/MT (+INR 5,150/MT Y-o-Y) at Basic prices, GST @ 18% Extra.

United Arab Emirates remained largest exporter of scrap to India – Imports from largest supplier UAE surged 27% Y-o-Y to 0.76 MnT in FY18, on the other hand, USA stepped down at second largest exporter’s position witnessing 24% Y-o-Y fall and exported 0.61 MnT ferrous scrap during FY18. Followed by other prominent sources of ferrous scrap like UK (0.45 MnT, -42% Y-o-Y), South Africa (0.27 MnT, +35% Y-o-Y), Australia (0.23 MnT, +15% Y-o-Y), Hong Kong (0.20 MnT, +33% Y-o-Y) and Singapore (0.18 MnT, Stable Y-o-Y) respectively.

Bulk scrap imports fell 47% in FY18 – In FY18, India imported 322,940 MT ferrous scrap in bulk vessels, down significantly by 47% Y-o-Y as against 608,320 MT recorded in FY17. Amid high scrap prices and cheaper availability of domestic scrap, Indian steel mills remained preferring domestic scrap over imported and kept away from importing scrap in bulk volumes.

Scrap imports marginally down in Q1 CY18 – During Q1 2018, India imported 1,046,803 MT ferrous scrap, down marginally 3% Y-o-Y as against 1,081,035 MT scrap imports during Q1 CY17. On quarterly basis, Indian scrap imports increased 8% in Q1 2018 as against 971,967 MT in Q4 CY17. UAE remained largest importer occupying 25% share and witnessed 63% Y-o-Y growth while USA scrap exports fell sharply by 62% Y-o-Y in Q1 2018 occupying 8% share. Canada witnessed significant growth in exports to India in Q1 2018 and supplied 0.05 MnT as against minor exports in Q1 2017.

Scrap imports rose 35% Y-o-Y in Mar’18 – Improving demand in finish steel after the announcement of budget’18 and projections of earning higher profit margins kept steel makers optimistic about the market in Mar’18. India imported 372,312 MT ferrous scrap in Mar’18, up 35% Y-o-Y against 274,866 MT imports recorded in Mar’17. On monthly basis, imports climbed 11% M-o-M in Mar’18 against 335,471 MT imports recorded in Feb’18.

In Mar’18, UAE supplied highest 99,200 MT ferrous scrap, up 17% M-o-M occupying 27% share in total scrap imports to India. UK stepped up as the second largest exporter suppling 30,257 MT (+97% M-o-M), followed by South Africa (27,332 MT, +103% M-o-M), United States (25,596 MT, +13% M-o-M), Singapore (16,946 MT, +11% M-o-M) and Togo (14,245 MT, +63% M-o-M) respectively.

Country-wise Indian ferrous scrap imports –

Quantity in MnT
Source: SteelMint Stats