Indian Ferrous Scrap Imports in July Hit 1 Year High

India world's third-largest scrap importer after Turkey and South Korea has witnessed fifth successive rise in its monthly scrap imports in July since Feb'18. According to customs data maintained with SteelMint, ferrous scrap imports have hit last 12 months high in Jul'18.

India imported 501,556 MT ferrous scrap in Jul'18, marginally up by 3% M-o-M as against 485,466 MT scrap imports recorded in Jun'18. On yearly basis, imports edged down in Jul'18 by 3% Y-o-Y against 517,973 MT ferrous scrap in Jul'17. Notably, scrap imports in Jul'17 were recorded highest in 2017, thus scrap imports in Jul'18 have climbed last 12 months high in India.

USA stepped up at the largest scrap supplier position in July - In Jul'18, USA supplied highest 128,400 MT ferrous scrap (+44% M-o-M) occupying 26% share in total scrap imports to India. UAE stepped down at second largest position supplying 67,316 MT (- 22% M-o-M) ferrous scrap in Jul'18. UK stood at the third largest exporter's position supplying 54,209 MT ferrous scrap occupying 11% share.

Followed by other prominent sources like Singapore (38,286 MT, -18% M-o-M), South Africa (28,406 MT, stable M-o-M), Australia (19,455 MT, -33% M-o-M) and Togo (17,867 MT, +195% M-o-M) in Jul'18.

Port wise - Top Indian ports for ferrous scrap import activities remained as Chennai (27%), Kandla (20%), JNPT/Nhava Sheva (15%), Ludhiana (15%), Vizag (7%) and Mundra (4%).

Indian bulk scrap imports rise 96% M-o-M in July - Total 4 bulk vessels berthed at Indian ports comprising total 126,618 MT ferrous scrap in July. Scrap imports in July increased 96% M-o-M as against 64,510 MT in Jun'18. However, no vessel arrived at berth in India in August witnessing nil bulk scrap imports.

Imported scrap prices moved down in July - The average price for USA origin Shredded scrap stood at USD 370/MT, CFR India in Jul'18 as against an average of USD 383/MT, CFR in Jun'18. Likewise, prices for HMS 1&2 from UAE decreased sharply to USD 340/MT from an average around USD 368/MT, CFR in Jun'18.

Average domestic HMS (80:20) scrap prices in Jul'18 stood at INR 24,638/MT, ex-Mumbai, down INR 1,648/MT (USD 23) M-o-M as against INR 26,286/MT, basic prices, GST @ 18% Extra. Downward correction in prices resulted in improving demand for imported scrap however, imports remained limited on seasonal slowdown in the country.

During the first seven months of CY18, India imported 2.92 MnT ferrous scrap, up 6% Y-o-Y as against 2.75 MnT scrap imports during the same period CY17. According to WSA, Indian crude steel production is recorded at 61.83 MnT during first seven months of CY18, while it is recorded at 9 MnT, up 3% M-o-M in Jul'18.

Country-wise Indian ferrous scrap imports -

Quantity in MnT,
Source: Customs Data