38,500 MT Bulk Ferrous Scrap Import Vessel to Arrive at Indian Port

As per vessel line up data maintained with SteelMint, a bulk scrap import vessel named 'MV Sagar Kanya' is expected to arrive at Kandla port on 09th Jun'19.

According to market participants report to SteelMint, the vessel has been loaded from the Ghent Port, Belgium. It belongs to one of the leading trader based in Dubai. Few Gujarat based steelmakers have booked it in combine comprises of total 38,420 MT mix grade scrap. As per reports received, the vessel was booked at an average price of around USD 348-352/MT, CFR Kandla.

Prior to this, the country observed a bulk scrap import vessel of 36,650 MT arrived in the closing of Apr'19.

Bulk ferrous scrap imports remained nil in May’19 - As per vessel line up data maintained with SteelMint, total bulk scrap imports remained nil as no May shipment cargo has arrived at berth in May’19. However, bulk scrap imports were recorded at 64,910 MT in Apr’19.

Notably, Indian bulk scrap imports stood 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. 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.

Indian ferrous scrap market had turned silent in March-April period for bulk scrap bookings on general elections scheduled over more than a months’ time during Apr-May’19. Limited cash flow and slowing down in construction activities and automobile sales kept end-user demand subdued in the market. However, during early May global scrap prices observed considerable fall and few steelmakers started inquires for June-July shipment bulk scrap cargoes.

Current market scenario - Subcontinental markets like Pakistan and Bangladesh have been turned very silent for scrap trades amid ongoing long Eid holidays in this week. Limited demand in Turkey has continued to put pressure global scrap prices. Thus, most of the scrap importers in India remained in ‘wait and watch’ mode to have more clarity.

SteelMint’s current assessment for containerized Shredded from Europe and UK stand in the range USD 330-333/MT, CFR Nhava Sheva. Trades for HMS scrap have also been slowed down keeping prices almost flat this week.