Indian Ferrous Scrap Imports Hit 10 Month High in May

India world’s third-largest scrap importer after Turkey and South Korea has witnessed third successive rise in its monthly scrap imports in May. According to customs data maintained with SteelMint, ferrous scrap imports in May’18 hit last 10 months high. Fall in global scrap prices, improved demand for finish steel and high profit margins in semis market kept steel makers active for scrap imports during Apr-May’18.

India imported 466,382 MT ferrous scrap in May’18, up 32% Y-o-Y against 352,450 MT scrap imports recorded in May’17. On monthly basis, imports climbed 12% M-o-M in May’18 against 415,468 MT ferrous scrap imports recorded in Apr’18. Earlier to this, highest scrap imports recorded at 517,973 MT in Jul’17.

In May’18, UAE supplied highest 86,062 MT ferrous scrap, up 7% M-o-M occupying 18% share in total scrap imports to India. USA stepped up as the second largest exporter again supplying 64,219 MT ferrous scrap comprising higher portion unloaded through bulk vessels in May’18. USA exports rose 14% M-o-M in May against 56,292 MT in Apr’18. UK remained third highest supplier witnessing 9% M-o-M rise which exported 62,793 MT occupying 9% share in May’18.

Other prominent sources of ferrous scrap were Singapore (42,513 MT, stable M-o-M), Belgium (37,330 MT, +310% M-o-M), South Africa (25,007 MT, stable M-o-M), Togo (11,464 MT, +33% M-o-M) and Kuwait (9,442 MT, -30% M-o-M) respectively.

During FY18 (Apr’17-Mar’18), top Indian ports for ferrous scrap import activities were Chennai (27%), Kandla (20%), JNPT/Nhava Sheva (15%), Ludhiana (15%), Vizag (7%) and Mundra (4%).

Imported scrap prices edged down while domestic scrap prices moved up in May’18 – The monthly average price for USA origin Shredded scrap stood at USD 387/MT, CFR India, down by USD 6/MT against an average of USD 393/MT, CFR in Apr’18. Likewise, prices for HMS 1&2 from UAE decreased to USD 360/MT from an average around USD 365/MT, CFR in Apr’18. Average domestic HMS (80:20) scrap prices in May’18 stood at INR 27,290/MT (up INR 1345/MT M-o-M) ex-Mumbai and INR 26,575/MT (up INR 560/MT M-o-M) ex-Chennai, Basic prices, GST @ 18% Extra.

In May’18, five bulk vessels berthed at Kandla port comprising total 164,873 MT ferrous scrap, 3 out 5 vessels were booked from USA and each one from Netherland and Australia. However, 3 more bulk vessels booked by importers in April and early May have reported as berthed at Indian ports in June’18.

Indian scrap imports up 9% Y-o-Y during Jan-May’18 – During first five months CY18, India imported 1.93 MnT ferrous scrap, up 9% Y-o-Y as against 1.77 MnT scrap imports during the same period CY17.

UAE remained the largest importer as it supplied 0.43 MnT ferrous scrap occupying 22% share. UAE witnessed growth in scrap exports by 48% Y-o-Y while USA scrap exports fell down by 23% Y-o-Y to 0.20 MnT occupying 10% share in total scrap imports in India.

Followed by other prominent exporters like UK (0.19 MnT, -10% Y-o-Y), Singapore (0.13 MnT, +86% Y-o-Y), South Africa (0.12, +20% Y-o-Y). Canada, Togo and Belgium exported 0.06 MnT each witnessing sharp growth in scrap exports to India as against last year.

On the other hand, Kuwait supplied 0.05 MnT while Malaysia, Hong Kong and Australia witnessed less demand from Indian importers during Jan-May’18 which supplied around 0.04 MnT ferrous scrap each occupying 3% share of total scrap imports to India. These exporters majorly supply containerized scrap more as compared to bulk vessels.

Country-wise Indian ferrous scrap imports –

Quantity in MnT
Source: SteelMint Stats