India’s scrap imports extend rapid decline in February

By Anil Mathews

NEW DELHI (Scrap Monster): According to latest trade statistics released by the Indian Directorate General of Commerce Intelligence and Statistics (DGCI&S), the country’s scrap imports continued to decline sharply during February this year. The imports had started the year 2017 on a weak note, declining considerably during the first month of the year.

As per data, India imported 453,000 tons of scrap steel in February this year. The imports were down significantly by 19.3% when compared with those during the same month a year before. The country’s scrap imports had totaled 561,000 during February 2016. When matched with the previous month, the imports were down by 8.9%. India’s scrap imports had totaled 497,000 tons during January this year. This is the second month in a row that scrap imports have registered year-on-year decline, DGCI&S press release noted.

Surprisingly, Tanzania emerged as the top exporter of scrap to India during the month. The imports from Tanzania totaled 108,000 tons, accounting for nearly 24% of the total scrap imports by India during the month. It must be noted that the imports from Tanzania had been negligible at 9,008 tons during February 2016. In second place was the UAE. The scrap imports from the country declined sharply by 39% over the previous year to total 63,000 tons. The country’s scrap imports from the US totaled 59,000 tons, declining significantly by 40% over the previous year.

The cumulative scrap imports during the initial two months of the current year totaled 950,000 tons.

Scrap Imports-Jan ‘17

The country’s scrap imports totaled 497,000 tons during the first month of the year. The imports made feeble start to the year, falling sharply by 22.4% when compared with the same month a year before. Month-on-month, the imports declined sharply by 21.5%. Prior to Jan ’17, the country’s imports had been increasing for four months in a row.

The top three exporters of scrap to India were the US, the UK and the UAE. The imports from the US totaled 116,000 tons, rising sharply by 23.4% over the previous year. On the other hand, the imports from the UK plunged by 31.5% y-o-y to total 57,000 tons. The imports from the UAE too were down sharply by 43.4% to 53,000 tons during the month.

Scrap Imports-2016

During the entire year 2016, India imported 6.382 million tons of scrap. The yearly imports dropped by nearly 5%, as compared with the imports of 6.718 million tons during 2015. The yearly imports registered second straight year of decline in 2016. The monthly imports averaged at 532,000 tons. The largest supplier of scrap to India during the year was the US. The US scrap exports to India totaled 985,000 tons, accounting for 15.4% of total scrap imports by India during the year. The scrap imports from the US jumped higher by nearly 10% over the previous year. The second largest scrap exporter to India was the UK with 969,000 tons. The imports from the UK accounted for 15.2% share of India’s scrap imports in 2016. The imports from the UK have increased by 5% during the year.

India aims to raise its steel output from 89 million metric tons per year currently to as much as 300 million metric tons by 2030. The projected jump in steel output growth is expected to boost scrap demand over the next decade, as nearly 50% of the steel making capacities in the country employ scrap-intensive EAF or induction steelmaking methods. The ferrous scrap deficit in the country, currently at 5 million tons per year, is projected to touch 9 million tons by 2022, according to Steel Ministry sources.