Ferrous Scrap imports to India reported a rise of 3.5% M-o-M in Jan’15, contributing to total sum of 4.3 MnT imports in FY15 (Apr’14- Jan’15).
India imported 4.1 MnT Ferrous Scrap in FY14 and looking at January figures, it is expected that imports this financial year may cross 5 MnT.
Despite tough time in Steel Industry, Scrap imports are reflecting upward graph. In Jan’15, India imported 4.63 lakh MT of Ferrous Scrap. UAE was the top Scrap exporting nation to India, followed by South Africa & UK.
In line, there can be seen a significant rise of about 85% M-o-M in Scrap imports from USA to India. Last month (Dec’14), total imports from USA was about 25,000 MT, which raised to 46,600 MT this January. Cold response from Turkey market might be a major reason for increase in exports from USA to India (USA is among the largest suppliers of Scrap to Turkey).
While considering ports, Ludhiana ICD Port imported the highest amount of Scrap, followed by Chennai & JNPT. Inclination of Ludhiana towards UAE over South Africa (M-o-M) has led UAE to top the list. Scrap imports in Ludhiana from UAE raised by 72% from previous month (Dec’14).
Shredded Scrap gets Cheaper; falls to USD 285/MT, CFR India
After witnessing a significant fall of around 25% (Y-o-Y) in Scrap offers to India, it is expected that imports will remain a preferred source of raw material for steel smelters. Strong Indian Rupee is further adding up to the preference of importing Scrap in buyers.
Last offers for Shredded Scrap from Europe were assessed at USD 285/MT and HMS at USD 275/MT, CFR India.
In outlook, looking at imported figures, market experts as well as participants are anticipating that Scrap imports will touch to about 4.8-5 MnT in next 2 months (FY15). But at this crucial period (financial year end), where Steel prices are running at 5-year low and about to touch 2008 lowest level, it would be interesting to watch, whether the Scrap imports will touch 5 MnT?
Source: SteelMint Research
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