36,650 MT Bulk Ferrous Scrap Import Vessel to Arrive at Indian Port Shortly

As per vessel line up data maintained with SteelMint, a bulk scrap import vessel named 'Bao Resource' is expected to arrive at Kandla port on 27th Apr'19.

According to market participants report to SteelMint, the vessel has been booked from the Netherlands by Gujarat based steelmakers and comprises of total 36,620 MT mix of HMS & Bonus scrap. As per reports received, the vessel was booked at an average price of around USD 330-340/MT, CFR.

Prior to this, India observed a bulk scrap import vessel of 28,260 MT arrived in the beginning of Apr'19.

As per vessel line up data maintained with SteelMint, total bulk scrap imports recorded at 536,771 MT in FY19 (Apr’18-Mar’19), up 66% Y-o-Y against 322,940 MT bulk scrap imports recorded during FY18. The share of bulk scrap to India is estimated to be around 10-12% in India's total scrap imports.

USA remained the largest supplier of bulk scrap to India - USA supplied 265,681 MT bulk ferrous scrap to India occupying almost a half share followed by UK (146,500 MT), Australia (53,980 MT) and Netherlands (38,670 MT) occupying 27%, 10% and 7% share. Notably, France supplied first ever a single bulk vessel in Nov’18 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.

The average price of HMS 1 from Dubai increased to USD 345/MT, CFR Nhava Sheva in FY19, up almost 8-10% Y-o-Y as against USD 320/MT, CFR in the previous financial year FY18. While average domestic HMS (80:20) scrap prices stood at INR 25,800/MT (USD 370), ex-Mumbai, up INR 3,800/MT (USD 55) Y-o-Y against INR 22,000/MT, GST @ 18% extra.

India imported total 4.72 MnT ferrous scrap in FY19 (till Jan'19) against 4.53 MnT ferrous scrap recorded in FY18 and major sources of imports were UAE, USA and UK.

Current market overview - Indian market observed limited inquiries for imported scrap amid ongoing elections. Minor trades for low priced scrap picked up amid revival of global scrap prices. Major steelmakers remained away from buying higher priced scrap preferring domestic scrap and sponge Iron on easier and cheaper availability.

SteelMint’s assessment for containerized Shredded from UK, Europe and US stands stable in the range USD 332-335/MT, CFR Nhava Sheva. HMS 1 from Dubai traded at levels of around USD 325-330/MT, CFR West African HMS 1&2 in 20-21 containers traded at USD 310-315/MT, CFR.