Indian Bulk Scrap Imports Recorded at 515,000 MT in 2018 - Port Data

India world’s third-largest scrap importer after Turkey and South Korea has witnessed more than a half MnT bulk scrap imports in 2018. As per vessel line up data maintained with SteelMint, Indian bulk scrap imports recorded at 515,121 MT in CY18. Which increased 37% Y-o-Y in 2018 as against 376,600 MT bulk scrap imports recorded during CY17.

During first three-quarters of FY19, (Apr’18-Dec’18) India imported 486,771 MT bulk ferrous scrap, up 65% Y-o-Y as against 294,590 MT in the same period in FY18.

USA remained the largest bulk scrap supplier in 2018 - USA remained the largest bulk scrap supplier occupying highest 52% share. US supplied 265,681 MT bulk scrap in 2018, down 16% Y-o-Y as against 316,580 MT in 2017. Followed by other major suppliers were UK (96,500 MT), Australia (53,980 MT), Netherlands (38,670 MT) and Sweden (28,350 MT) occupying 19%, 10%, 8% and 6% share.

Notably, India imported a bulk scrap vessel comprising 29,940 MT from France the first time in 2018.

Gujarat based Kandla port remained the top port of bulk scrap unloading activities followed by Chennai in southern India.

Imported scrap prices moved up almost 20% Y-o-Y in 2018 - The average price of HMS 1&2 from UAE increased to USD 351/MT, CFR Nhava Sheva in 2018, up almost 20% Y-o-Y as against USD 292/MT, CFR last year. While average domestic HMS (80:20) scrap prices stood at INR 25,700/MT, ex-Mumbai, up INR 5,000/MT (USD 70) Y-o-Y, GST @ 18% extra. HMS (80:20) scrap prices recorded at INR 25,327/MT, ex-Chennai in 2018 as against INR 18,967/MT last year.

Ship Breaking import volume up 3% Y-o-Y in 2018 - According to the data released by a leading ship buyer company, India remained the world’s second largest importer of ships beached for cutting in 2018. In Alang’s ship cutting market, total tonnage of ship import recorded at 2,284,340 LDT (in LT) in 2018, up 3% Y-o-Y as against 2,213,884 LDT (in LT) volume in 2017.

Bulk scrap imports remained nil in Dec’18 - The country observed nil bulk scrap imports in Dec’18 after witnessing a jump in bulk scrap imports in Nov’18. Over seasonal concerns, volatility in currency, year-end lull and dull finish steel demand, buyers stand away from buying bulk scrap and cheaper domestic scrap remained a preference. On the other hand, India’s ship breaking import volume recorded at 157,929 LDT (in LT) in Dec’18, down 25% M-o-M.