Indonesia: Scrap Imports Rise 75% M-o-M in March'20

Indonesia, a prominent scrap importer has witnessed a sharp increase by over 75% M-o-M in its ferrous scrap import in Mar'20. The country has imported around 0.14 MnT of scrap in Mar'20 in contrast with 0.08 MnT imported in Feb'20.

Hong Kong and Singapore remained the largest scrap suppliers to Indonesia in Mar'20. The country imported 0.02 MnT of scrap from each country. Other countries like Japan and USA supplied a nominal quantity of scrap at 0.01 MnT each.

In Jan'20 imported scrap offers to Indonesia were quoted for P&S & Busheling at USD 325/MT CFR & USD 328-330/MT CFR, level respectively by the suppliers from nearby origins. Offers for USA origin P&S were reported at USD 315/MT CFR level, thus good number of bookings were made at these level for March shipment.

During the FY'20 (Apr'19 to Mar'20) Ferrous scrap imports observed a fall by 14% Y-o-Y and were recorded at 2.27 MnT in comparison with 2.64 MnT imported in FY'19, as per stats data maintained with SteelMint.

Increase in monthly imports could be attributed to the strong bookings in January and early February due to further clarity and on December's govt regulations, as buyers were mostly silent in Dec month. In Dec'19, new government regulation was started for imported scrap which includes the inspections of non-hazardous and Toxic (Non-B3) waste imported to Indonesia, by following the norms of Regulations of the Ministry of Trade number 84 of 2019.

The Important pointers highlighted in the regulations were:
. Prevent the import of toxic material.
. Necessitates cargoes to originate from exporters registered in their home countries.
. Disallows trans shipments.

Most of the Indonesian steelmakers and buyers had asked for more clarity and opted to wait and watch during Dec'19.

Quantity in MT
Source: SteelMint Stats & Customs data