Indian Ferrous Scrap Imports Rise 16% in CY18

India world’s third-largest ferrous scrap importer after Turkey and South Korea has witnessed a rise of 16% Y-o-Y in ferrous scrap imports in CY18. As per customs data, India imported 5,285,427 MT ferrous scrap in CY’18 as against 4,568,471 MT recorded in CY’17.

As per vessel line up data maintained with SteelMint, total bulk scrap import volume recorded at 515,121 MT in CY18, up 37% Y-o-Y against 376,600 MT bulk scrap imports recorded during CY17. Thus, the share of containerized scrap recorded around 90% in total scrap imports to India.

Gujarat based Kandla port remains the top port for bulk scrap unloading activities. While other major Indian ports were Nhava Sheva, Chennai, Vizag, Ludhiana and Goa.

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.

UAE remained the largest scrap supplier to India - Demand of UAE based scrap especially HMS 1 turned high in India amid shorter delivery period (around 7-8 days) as compared with European or USA origin material (40-45 days). UAE supplied 1.07 MnT in 2018 significantly up 62% Y-o-Y occupying highest 20% share. Followed by other prominent exporters like UK, USA, Singapore and South Africa occupying 12%, 11%, 8% and 7% share in total scrap imports in CY18.

According to WSA, India's crude steel production recorded at 106.46 MnT during CY18, up 5% Y-o-Y as against 101.46 MnT during last year. Strong domestic demand resulted in a decline in finish steel exports (Finish Flat down 45% Y-o-Y and Finish Long down 25% Y-o-Y) while total semi-finish imports declined 10% Y-o-Y to 454,758 MT in CY18.

Scrap imports marginally down in Dec'18 - India imported 504,115 MT ferrous scrap, down 2% M-o-M against 516,879 MT in Nov'18. Notably, scrap imports Nov'18 was recorded highest in CY18. However, on yearly premises scrap imports increased significantly by 52% Y-o-Y against 332,586 MT ferrous scrap in Dec’17.

Key Updates -

-- India's Ministry of Steel has recently indicated that the scrappage policy is in the final stages and expected to be unveiled very soon. Two scrap recycling plants are being planned to be set-up in Northern and Western regions which currently generate about 70% steel scrap with a capacity of 1.5-3 MnTPA in India.

-- Vehicle recycling may help boost domestic generation of 6-7 MnT of ferrous scrap annually making it less dependent on imports.