35,200 MT Bulk Ferrous Scrap Import Vessel Reported at Indian Port

This is 4th bulk scrap import vessel to India for the month of July.

As per vessel lineup data maintained with SteelMint, India’s fourth bulk ferrous scrap import vessel has been reported so far in the month of July 2019 at Kandla port. As per updates, a vessel named ‘Hoihow’ carrying 35,200 MT of ferrous scrap from USA is expected to arrive at berth on 31st Jul’19. If sources are to be believed, this mixed cargo comprises of Shredded, HMS 1&2 and Bonus scrap and has been booked by two of prominent west coast based steel makers in collaboration.

Notably, bulk scrap imports of 138,260 MT in Jul’19 hit highest in 2019 as July month historically remains one of the favorite months for Indian steelmakers in order to prepare for post-monsoon activity and on expected pickup in end-user and automobile demand in the country. Thus, total bulk imports in Jul’19 may jump almost four-folds or 260% M-o-M as against just 38,420 MT ferrous scrap observed in Jun’19.

During Jan-Jul’19, 7 bulk vessels of ferrous scrap by West Coast-based Indian steelmakers have been reported at Kandla port with a total of 291,590 MT ferrous scrap imported from the prominent supplier yards in USA, Netherland, UK and Russia. However, on yearly premises, import volume witnessed a decline of 25% against 386,681 MT imports recorded during the same period last year.

Indian imported scrap prices under pressure on weak domestic fundamentals - Indian market continues to observe lowering steel prices over the month on dwindling end-user demand in both construction and automobile sectors. On the other hand, domestic melting scrap prices likely to remain rangebound. As per sources, offers for Shredded scrap are hovering in the range USD 310-315/MT, CFR while HMS from different origins is being offered in a range of USD 280-300/MT, CFR depending on quality, however, very limited deals in containers observed amid less viability and still lower buying interest among steelmakers.