India: Scrap arrivals in major ports drop by 43% m-o-m till 3rd week of May

Imported scrap arrivals at Indian ports in the first three weeks of May saw a significant decline compared to the previous month. The overall drop of 43% indicates a slowdown in scrap imports during this period. The total volume amounted to 249,535 tonnes (t) compared to 437,596 t recorded during the same period in April, according to vessel line-up data maintained with SteelMint.

Here is a breakdown of the scrap arrivals by region:

Region-wise scrap arrivals

North: The northern region received 99,407 t of scrap during the first three weeks of May, indicating a 39% decrease from the 163,891 t received in April. Notably, Chawapayal (Samrala) ICD, Kilaraipur ICD, and Pithampur ICD accounted for 53% of the total arrivals. Among the top importers in this region, Jaideep Ispat acquired 12,005 t, followed by Amba Shakti Group with 7,491 t.

West: The western region observed 84,763 t of scrap arrivals in the first three weeks of May, marking a 53% decline from the 180,097 t recorded in April. Major ports such as Mundra and Nhava Sheva covered 68% share of the total arrivals. SMW Ispat emerged as the largest buyer in the region with 6,585 t, followed by HAQ Steels with 6,080 t.

South: The southern region received 54,063 t of scrap during the first three weeks of May, reflecting a 26% decrease from 72,764 t received in April. Chennai Port accounted for 81% of the total scrap arrivals in the southern region, amounting to 43,812 t. Prakash Ferrous and J R Metal Chennai Ltd were the top recipients in this region.

East: The eastern region experienced relatively lower scrap arrivals compared to other regions, with a total of 11,302 t in the first three weeks of May. Jajpur ICD received 6,625 t, while Kolkata Port received 2,538 t.

Grade-wise scrap arrivals

Furthermore, based on the grade of scrap, the data reveals the following:

• Heavy Melting Scrap (HMS) constituted the majority of imports, accounting for 140,544 t, which corresponds to 56% of the total volume assessed in the first three weeks of May.
  
  
• The Light Melting Scrap (LMS) grade accounted for a total of 27,560 t.
  
  
• Mild Steel (MS) shredded grade accounted for 26,173 t, until the third week of May.
  
  

Outlook

The decline in imported scrap arrivals suggests a possible slowdown in steel production and raises concerns about domestic scrap availability and pricing viability. Monitoring this trend in the upcoming months will be crucial to assess its continuity.