Indian Importers Resume Bulk Scrap Bookings; Four Vessels Expected in May
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Four Bulk Scrap import vessels reported which are expected to arrive at Kandla port by mid-May'18.
According to recent updates on vessel line up data maintained with SteelMint, four bulk scrap vessels are reported at Indian port Kandla. Four bulk vessels carrying total tonnage of about 121,300 MT ferrous scrap from USA are expected to arrive by mid-May'18. According to sources, these bulk vessels were mostly booked by west-coast based leading scrap importers in India.
Out of four bulk vessels, the first vessel named 'Binnur C' carrying 29,100 MT mix grade ferrous scrap, is expected to arrive at Kandla port on 16th Apr'18. According to sources, this vessel was booked from USA at around USD 370/MT, CFR towards last week of Jan'18.
In the mid Feb'18, Indian steel mills booked two more bulk vessels at around USD 370-380/MT, CFR levels. While in the third week of Feb'18, a bulk vessel was booked again containing 32,000 MT mix grades of scrap comprising 10,000 MT HMS 1&2 (80:20) at USD 378/MT, 15,000 MT Shredded at USD 383/MT and 7,000 MT P&S at USD 388/MT, CFR India respectively.
After remaining calm for almost 2-3 months, Indian importers resumed bulk scrap bookings over improving demand for finish steel in India.
As per vessel line up data maintained with SteelMint, so far in CY18 only one vessel arrived at berth in India. A vessel named 'Chestnut' carrying 28,350 MT ferrous scrap from Sweden arrived at berth at Kandla Port on 2nd Feb'18.
Bulk scrap vessel line up in CY18 -
| Vessel Name | Quantity (MT) | Origin | Date of Berth | Status | Unload Port |
| Chestnut | 28,350 | Sweden | 02-Feb'18 | Berth | Kandla |
| Binnur C | 29,100 | USA | 16-Apr'18 | Expected | Kandla |
| Pan Amber | 32,000 | USA | 02-May'18 | Expected | Kandla |
| Jiangmen Trader | 31,700 | USA | 08-May'18 | Expected | Kandla |
| Tunsin | 28,500 | USA | 10-May'18 | Expected | Kandla |
Provisional data
Source: SteelMint Research
Indian ferrous scrap imports fell 15% Y-o-Y in 2017 - In 2017, India remained third-largest scrap importer after Turkey and South Korea. As per customs data, India imported 4.57 MnT ferrous scrap in 2017, which was recorded at 5.35 MnT in CY16. High global prices compared to domestic scrap prices kept away Indian mills from importing scrap in large volumes. Out of 4.57 MnT scrap imported in CY17, 8% (0.377 MnT) was through bulk vessels and rest in containers.
Global Ferrous Scrap Market Overview - Week 15, 2018
1. Turkey resumed deep sea scrap cargo bookings with price assessment for US origin HMS (80:20) is recorded at USD 353/MT, CFR Turkey compared to last week's closing at USD 354/MT, CFR.
2. Imported Shredded scrap offers to India in containers for US and UK origin were assessed at USD 385-387/MT, CFR Nhava; USD 385-387/MT, CFR Pakistan and USD 395-400/MT, CFR Bangladesh
3. Hyundai Steel's Bid for Japanese scrap dropped to 5-month low. As per latest price update for this week, Hyundai Steel placed bids for H2 grade scrap at JPY 33,500/MT (USD 312), FoB Japan
4. Japan's Tokyo Steel slashed bids twice this week for Japanese scrap. Now H2 scrap fetches JPY 34,500/MT (USD 323) at largest work in central Japan-Tahara. While the same grade fetches JPY 33,000/MT (USD 309) at Utsunomiya works in Kanto region in north Japan.
5. The average bids in Kanto Tetsugen tender for Apr'18 recorded at JPY 32,979/MT (USD 308), FAS which have decreased significantly by JPY 4,541/MT (USD 42) on M-o-M basis.
