India world’s third-largest scrap importer after Turkey and South Korea has witnessed a rise in its scrap imports in Oct’18. As per customs data, India imported 442,304 MT ferrous scrap in Oct’18, up 9% as against 406,506 MT recorded in Sept’18. On yearly premises, scrap imports increased by 31% Y-o-Y as against 338,635 MT ferrous scrap in Oct’17.
UAE remains the largest scrap supplier to India – UAE supplied the highest 120,651 MT ferrous scrap (up 29% M-o-M) occupying 27% share in total scrap imports. UK stood at second largest exporter position supplying 51,531 MT ferrous scrap (up 4% M-o-M) occupying 12% share. South Africa observed a sharp 62% M-o-M rise in scrap exports as it supplied 45,859 MT in Oct’18 as against 33,215 MT in Sept’18 to India.
Singapore stepped down at the fourth largest supplier position supplying 36,208 MT in Oct’18, up 9% M-o-M. Followed by other prominent sources like USA (30,160 MT, -6% M-o-M), Kuwait (14,743 MT, +109% M-o-M) and Togo (13,360 MT, -19% M-o-M) in Oct’18.
Imported and domestic scrap prices down in Oct’18 – The average price of HMS 1&2 from UAE decreased to USD 338/MT, CFR in Oct’18, down USD 8-10/MT M-o-M. Which edged down further to an average of USD 332/MT, CFR in Nov’18.
Average domestic HMS (80:20) scrap prices stood at INR 25,777/MT, ex-Mumbai, down INR 1390/MT (USD 20) M-o-M in Oct’18. Easier availability of local scrap remained a preference amid depreciated INR against USD in the country and domestic scrap prices recorded at INR 25,948/MT, ex-Mumbai, up INR 171/MT M-o-M in Nov’18 GST @ 18% Extra.
During Jan-Oct’18, India imported 4,264,433 MT ferrous scrap, up 8% Y-o-Y as against 3,935,140 MT during the same period last year. On increasing scrap based crude steel production, total scrap imports are expected to reach 5 MnT mark in 2018.
According to WSA, India’s crude steel production recorded at 96.92 MnT during Jan-Nov’18 as against 92.38 MnT last year. It is reported at around 8.49 MnT in Nov’18, down 3% M-o-M as against 8.77 MnT in Oct’18.
Indian bulk scrap imports rise sharply in Nov’18 – Three bulk vessel arrived at berth in November after witnessing no bulk vessel for three successive months since August. As per vessel line up data, India imported total 126,440 MT bulk ferrous scrap in Nov’18 as against nil volumes in Oct’18.
During Apr-Nov’18 in FY19, India imported total 3,217,630 MT ferrous scrap, up 13% Y-o-Y as against 2,854,105 MT during the same period in FY18, out of which around 15% share is of bulk ferrous scrap (486,771 MT, up 65% Y-o-Y). Importers might have booked a considerable quantity ahead of December on the bearish global outlook.
Country-wise India ferrous scrap imports –
| Country | Oct’18 | Sept’18 | % M-o-M Change | Oct’17 | % Y-o-Y Change | Jan-Oct’18 | Jan-Oct’17 | % Y-o-Y Change |
| United Arab Emirates | 0.12 | 0.09 | 33.33% | 0.05 | 140.00% | 0.88 | 0.56 | 57.14% |
| United States | 0.03 | 0.03 | 0.00% | 0.05 | -40.00% | 0.54 | 0.64 | -15.63% |
| United Kingdom | 0.05 | 0.05 | 0.00% | 0.02 | 150.00% | 0.45 | 0.44 | 2.27% |
| Singapore | 0.04 | 0.03 | 33.33% | 0.01 | 300.00% | 0.33 | 0.15 | 120.00% |
| South Africa | 0.05 | 0.03 | 66.67% | 0.03 | 66.67% | 0.29 | 0.24 | 20.83% |
| Australia | 0.01 | 0.01 | 0.00% | 0.01 | 0.00% | 0.14 | 0.21 | -33.33% |
| Others | 0.14 | 0.17 | -17.65% | 0.17 | -17.65% | 1.63 | 1.70 | -4.12% |
| Total | 0.44 | 0.41 | 7.32% | 0.34 | 29.41% | 4.26 | 3.94 | 8.12% |
Quantity in MnT,
Source: SteelMint Stats
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