India: Scrap arrivals at major ports drop nearly 50% m-o-m till 3rd week of Jun'23

Imported scrap arrivals in Indian ports were recorded at 209,943 t in the first three weeks of June 2023, according to SteelMint's vessel line-up data. Scrap arrivals declined significantly by 47% m-o-m compared to 399,603 t in the corresponding period last month due to a slowdown in supply of the raw material.

Region-wise arrivals

• North India: The northern region received 60,159 t of scrap till the third week of June, a 62% m-o-m fall against 158,237 t in the same period in May. The main arrival points in this region were Chawapayal (Samrala) ICD, Kilaraipur ICD, and Ludhiana ICD, which accounted for 47% of total arrivals. The top importers of this region were Jaideep Ispat at 4,262 t, followed by Amba Shakti Group at 3,327 t.
  
  
• West India: The western region received 57,175 t of scrap in the period under review, down 57% from 133,432 t recorded in the first three weeks of May. Major ports such as Nhava Sheva and Mundra contributed 61% in total arrivals in this region. SMW Ispat emerged as the largest buyer with 5,765 t, followed by HAQ Steels with 2,379 t.
  
  
• South India: The southern region received 58,615 t of scrap in the first three weeks of June, decreasing by 37% from 92,609 t received in the corresponding period in May. Chennai Port accounted for 84% of total scrap arrivals in this region, amounting to 49,481 t. The top recipients in this region were Prakash Ferrous Industries, Pushpit Steels Pvt Ltd, and J R Metal Chennai Ltd, with 10,503 t, 4,578 t, and 2,622 t, respectively.
  
  
• East India: The eastern region saw relatively lower scrap arrivals compared to other regions, with 33,996 t till the third week of June. Kolkata received 24,539 t, while Jajpur ICD received 8,312 t. S M Niryat Pvt Ltd received a significant portion of scrap, amounting to 20,000 t in the first week of June.
  
  

Grade-wise arrivals

Heavy melting scrap (HMS) constituted the major share of 51% of total imports at 108,252 t in the period under review. Light melting scrap (LMS) was at 24,358 t and mild steel (MS) shredded was at 35,075 t.

Outlook

Scrap arrivals into India may rebound in the near term and an increase in demand is expected as mills are likely to restock for post-monsoon production.