India world’s third-largest scrap importer after Turkey and South Korea witnessed a second successive rise in its monthly scrap imports in April. Improving demand in finish steel after the announcement of budget’18 kept steel makers optimistic about the market in Apr’18.
India imported 415,468 MT ferrous scrap in Apr’18, up 21% Y-o-Y against 343,292 MT scrap imports recorded in Apr’17. On monthly basis, imports climbed 8% M-o-M in Apr’18 against 372,313 MT imports recorded in Mar’18.
In Apr’18, UAE supplied highest 80,238 MT ferrous scrap, down 19% M-o-M occupying 19% share in total scrap imports to India. UK remained the second largest exporter supplying 57,643 MT (+92% M-o-M), United States witnessed 120% M-o-M growth in scrap exports to India in Apr’18. US supplied 56,292 MT scrap comprising higher portion unloaded through bulk vessels in Apr’18.
Other prominent sources of ferrous scrap were Singapore (42,151 MT, +149% M-o-M), South Africa (25,320 MT, -7% M-o-M), Kuwait (13,417 MT, +3% M-o-M) and Malaysia (9,252 MT, -13% 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 declined while domestic scrap prices moved up marginally in Apr’18 – The monthly average prices for USA origin Shredded scrap stood at USD 393/MT, CFR India, down by USD 7-8/MT against an average of USD 401/MT, CFR in Mar’18. Likewise, prices for HMS 1&2 from Middle East decreased to USD 362/MT from an average around USD 370/MT, CFR in Mar’18. Average domestic HMS (80:20) scrap prices in Apr’18 stood at INR 25,945/MT (up INR 670/MT M-o-M) at Mumbai and INR 26,015/MT (up INR 85/MT M-o-M) at Chennai, Basic prices, GST @ 18% Extra.
In April, single bulk vessel berthed at Kandla port comprising 29,100 MT ferrous scrap from the USA. However, importers booked 3-4 bulk vessels in March and early April which berthed at Indian ports in May’18.
Indian scrap imports marginally up in Jan-Apr’18 – During first four months CY18, India imported 1.46 MnT ferrous scrap, up marginally 3% Y-o-Y as against 1.42 MnT scrap imports during the same period CY17.
UAE remained the largest importer as it supplied 0.34 MnT ferrous scrap occupying 23% share. UAE witnessed growth in scrap exports by 48% Y-o-Y while USA scrap exports fell sharply by 42% Y-o-Y to 0.14 MnT occupying 10% share. Followed by other prominent exporters like UK (0.12 MnT, -20% Y-o-Y), South Africa (0.09, +13% Y-o-Y), Singapore (0.09 MnT, +80% Y-o-Y) and Canada (0.05 MnT).
On the other hand, Kuwait, Togo, Malaysia, Hong Kong and Australia each supplied around 0.04 MnT ferrous scrap occupying 3% share of total scrap imports during Jan-Apr’18 to India. These exporters majorly supply containerized scrap more as compared to bulk vessels.
Country-wise Indian ferrous scrap imports –
| Country | Apr’18 | Mar’18 | % M-o-M Change | Apr’17 | % Y-o-Y Change | Jan-Apr’18 | Jan-Apr’17 | % y-o-Y Change |
| United Arab Emirates | 0.08 | 0.10 | -20.00% | 0.07 | 14.29% | 0.34 | 0.23 | 47.83% |
| United States | 0.06 | 0.03 | 100.00% | 0.03 | 100.00% | 0.14 | 0.24 | -41.67% |
| United Kingdom | 0.06 | 0.03 | 100.00% | 0.05 | 20.00% | 0.12 | 0.15 | -20.00% |
| South Africa | 0.03 | 0.03 | 0.00% | 0.02 | 50.00% | 0.09 | 0.08 | 12.50% |
| Singapore | 0.04 | 0.02 | 100.00% | 0.02 | 100.00% | 0.09 | 0.05 | 80.00% |
| Hong Kong | 0.01 | 0.01 | 0.00% | 0.02 | -50.00% | 0.04 | 0.05 | -20.00% |
| Australia | 0.01 | 0.01 | 0.00% | 0.02 | -50.00% | 0.04 | 0.05 | -20.00% |
| Others | 0.13 | 0.14 | -7.14% | 0.11 | 18.18% | 0.60 | 0.57 | 5.26% |
| Total | 0.42 | 0.37 | 13.51% | 0.34 | 23.53% | 1.46 | 1.42 | 2.82% |
Quantity in MnT
Source: SteelMint Stats
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