Indian Ferrous Scrap Imports Hit 16 Month High in Nov’18

UK scrap exports to India hit 2 years high while a share of bulk scrap imports recorded at 24% in Nov’18.

India world’s third-largest ferrous scrap importer after Turkey and South Korea has witnessed imports to hit more than 1 year high in Nov’18. As per customs data, India imported 516,879 MT ferrous scrap in Nov’18, up 17% as against 442,304 MT recorded in Oct’18.

Notably, the highest scrap imports earlier to this were recorded at 517,973 MT in Jul’17 witnessing almost 16 months high volume in Nov’18.

India observed three bulk vessels arrived at berth carrying 126,440 MT scrap in Nov’18. The share of scrap imports in bulk recorded at 24% while containerized scrap occupied remaining 76% share.

On yearly premises, Indian scrap imports increased significantly by 72% Y-o-Y against 300,746 MT ferrous scrap in Nov’17.

UK scrap exports to India hit almost 2 years high – United Kingdom observed a sharp rise in scrap exports to South Asian countries like India, Pakistan and Bangladesh during Oct-Nov’18 in absence of Turkish demand. UK stepped up at the largest supplier position and supplied 126,270 MT occupying highest 24% share in Nov’18. UK exports increased 145% M-o-M against 51,531 MT in Oct’18.

UAE stepped down at second largest position supplying 92,616 MT ferrous scrap (down 23% M-o-M) occupied 18% share. South African scrap exports remained stable against the previous month as it supplied 46,191 MT in Nov’18 to India.

Singapore remained the fourth largest supplier at 39,204 MT in Nov’18, up 8% M-o-M. Followed by other prominent sources were USA (26,026 MT, -18% M-o-M), Kuwait (14,230 MT, stable M-o-M) and Togo (10,426 MT, -22% M-o-M) in Nov’18.

Imported scrap prices maintained downtrend in Nov-Dec’18 – The average price of HMS 1 from UAE declined to USD 332/MT, CFR in Nov’18, marginally down USD 5/MT M-o-M. Which edged down further to an average of USD 325/MT, CFR in Dec’18.

Domestic scrap prices rangebound amid currency issues – Average domestic HMS 1&2 (80:20) scrap price stood at INR 25,950/MT, ex-Mumbai, almost stable M-o-M in Nov’18. Fluctuation in INR against USD and slow finish steel demand kept domestic scrap prices rangebound and recorded at an average of INR 25,707/MT, ex-Mumbai, in Dec’18 GST @ 18% Extra.

During Jan-Nov’18, India imported 4,781,312 MT ferrous scrap, up 13% Y-o-Y as against 4,235,886 MT during the same period last year. On increasing scrap based crude steel production, total scrap imports are expected to reach 5.20 MnT mark in 2018.

According to WSA, India’s crude steel production recorded at 96.92 MnT during Jan-Nov’18, up 5% Y-o-Y against 92.38 MnT the same period last year.

During Apr-Nov’18 in FY19, India imported total 3,734,509 MT ferrous scrap, up 18% Y-o-Y against 3,154,851 MT during the same period in FY18.

Indian bulk scrap imports recorded at 515,121 MT in CY18. Which increased 37% Y-o-Y in 2018 as against 376,600 MT bulk scrap during CY17. Around 10% share of total scrap imports seems to be of bulk cargo imports in India. Gujarat based Kandla port remains the top port of scrap unloading activities followed by Chennai in southern India.

Country-wise India ferrous scrap imports –

Quantity in MnT,
Source: SteelMint Stats