Indian Ferrous Scrap Imports Fall 15% in 2017

India world's third-largest scrap importer after Turkey and South Korea witnessed second consecutive fall in its annual ferrous scrap import volumes in 2017 since 2015. As per customs data, India imported 4.57 MnT ferrous scrap in 2017, which was recorded at 5.35 MnT in CY16. Thus, scrap imports registered 15% Y-o-Y fall as against the imports during last year.

High global prices compared to domestic scrap prices kept away Indian mills from importing scrap in large volumes. Major exporters like USA and UK witnessed significant fall of 27% and 47% Y-o-Y in 2017 in scrap exports to India.

Indian scrap imports fell marginally by 5% Y-o-Y in first three-quarters of FY18, as against 3.65 MnT ferrous scrap imports in Apr-Dec'16, scrap imports stood at 3.48 MnT in the current financial year.

India witnessed an increase in scrap imports by 10% M-o-M in Dec'17 against imports in Nov'17. India imported 0.33 MnT ferrous scrap in Dec'17 as against 0.30 MnT ferrous scrap imports in Nov'17. However, on yearly comparison, imports declined 28% Y-o-Y as against 0.46 MnT ferrous scrap imports in Dec'16.

On a quarterly basis, India registered fall of 29% Q-o-Q in Q4-CY17 as against 1.36 MnT imports in Q3-CY17. India imported 0.97 MnT ferrous scrap in Q4-CY17 which shrank 8% as against 1.05 MnT imports in Q4-CY16.

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

Global scrap prices remained high in 2017 - In 2017, the average price for USA origin Shredded scrap to India remained at USD 315/MT, CFR which was increased by upto USD 75/MT against an average of USD 240/MT, CFR in CY16. Likewise, prices for HMS 1&2 from Middle East increased by 75/MT, from an average around USD 220/MT to USD 295/MT, CFR. The domestic prices for HMS scrap in CY17 averaged at INR 20,680/MT Ex. Mumbai as against INR 16,100/MT, during CY16.

United States remained largest scrap exporter to India -

In 2017, United States exported highest (0.74 MnT, -27% Y-o-Y) ferrous scrap to India occupying almost 16% share in total scrap imports. Followed by United Arab Emirates (0.66 MnT, -6% Y-o-Y) and United Kingdom (0.48 MnT, -47% Y-o-Y) remained second and third largest ferrous scrap exporters to India respectively in CY17.

Other prominent sources of ferrous scrap to India in 2017 were - South Africa (0.26 MnT), Australia (0.22 MnT), Hong Kong (0.19 MnT), Singapore (0.18 MnT), Malaysia (0.17 MnT), and China (0.16 MnT).

In Dec'17, UAE supplied highest 0.06 MnT while USA supplied 0.05 MnT ferrous scrap to India. China, South Africa and United Kingdom exported 0.02 MnT ferrous scrap each. While Australia, Singapore, Hong Kong and Malaysia exported 0.01 MnT ferrous scrap in Dec'17 respectively.

Country-wise India ferrous scrap imports -

Quantity in MnT,
Source: SteelMint Stats