Indian Ferrous Scrap Imports Stable in February

Scrap exports from Canada to India multiplied nearly five folds while USA, South Africa and UK have witnessed significant fall in scrap exports on M-o-M basis in Feb’18.

India world’s third-largest scrap importer after Turkey and South Korea, has witnessed stable scrap imports for the second consecutive month in February.  India imported 335,471 MT ferrous scrap in Feb’18 as against 339,020 MT ferrous scrap imports recorded in Jan’17. However, on yearly comparison, imports declined 14% Y-o-Y as against 388,416 MT scrap imports in Feb’17.

Major exporters like USA, South Africa and UK witnessed significant fall 27%, 44% and 25% respectively while Canada recorded fivefold increase in scrap exports to India in Feb’18 on M-o-M basis against exports in Jan’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 Feb ’18 thus demand of Imported scrap remained stable. India observed a bulk vessel containing 28,350 MT scrap berthed at Kandla port in Feb’18. While steel mills booked another 2-3 bulk vessels in the second half of Feb’18 amid anticipation of the rise in offers again after Feb’18 for April-May deliveries.

Top Indian ports for ferrous scrap import activities were Kandla, Chennai, JNPT and Vizag.

Imported scrap prices increased in Feb’18 – The monthly average price for USA origin Shredded scrap to India stood at USD 382/MT, CFR which was increased by USD 10/MT against an average of USD 372/MT, CFR in Jan’18. Likewise, prices for HMS 1&2 from Middle East increased by 8/MT, from an average around USD 345/MT in Jan’18 to USD 353/MT, CFR in Feb’18. Amid high scrap offers and cheaper availability of domestic scrap, Indian steel mills remain preferring domestic scrap over imported. Average domestic HMS (80:20) scrap prices at Mumbai and Chennai remained mostly in the range of INR 24,300-25,000/MT (USD 373-383), which were up INR 500-1000/MT M-o-M (Basic prices, GST @ 18% Extra).

United Arab Emirates remained largest scrap exporter to India – In Feb’18, UAE supplied highest 84,460 MT ferrous scrap occupying 25% share in total scrap imports to India. Canada stepped up as the second largest exporter suppling 34,530 MT ferrous scrap to India. Followed by other prominent exporters like United States (22,712 MnT, -27% M-o-M), United Kingdom (15,383 MT, -25% M-o-M), Singapore (15,265 MT, +2% M-o-M) and South Africa (13,460 MT, -44% M-o-M) respectively.

Indian scrap imports fall 16% Y-o-Y during Jan-Feb’18 – India imported 674,492 MT ferrous scrap during first two months of CY18. Thus, India witnessed 16% Y-o-Y fall as against 806,169 MT ferrous scrap imports recorded during the same period last year.

Imports from highest supplier UAE increased 63% Y-o-Y to 164,396 MT, on the other hand, USA stepped down at second largest exporter’s position witnessing 68% Y-o-Y fall and exported 53,915 MT ferrous scrap during Jan-Feb’18.

Followed by other prominent sources of ferrous scrap like Canada (41,849 MT), South Africa (37,662 MT), UK (35,805 MT) Singapore (30,205 MT), Togo (21,436 MT), Australia (21,194 MT), Hong Kong (20,671 MT), and Malaysia (19,473 MT).

Country-wise India ferrous scrap imports –

Quantity in MT
Source: SteelMint Stats