Indian ferrous scrap imports fell 21pc to 423,878mt in October from 535,855mt prior year on weak demand from the auto and construction sectors. In October, scrap imports fell 11pc from 476,177 mt imports recorded in September, according to data analysed by Davis Index.
The United Arab Emirates supplied the highest tonnage 83,478mt ferrous scrap in October, accounting for 19.69pc share of total Indian imports. Imports from UAE dropped by 34pc to from the year ago and rose 31pc from 57,546mt in September.
Imports from the US dropped to 50,351mt in October from 95,474 mt in September, followed by other major exporters Singapore (35,156mt), United Kingdom (30,773mt) and South Africa (15,202mt).
In the Jan-Oct period, India imported 6.07mn mt ferrous scrap, up by 19pc from 5.10mn mt in the same period prior year. The UAE, the UK and the US constituted 16pc, 13pc and 11pc share in Indian imports, respectively.
After falling to almost a two-year low in the third quarter of 2019, Indian ferrous scrap import prices started rising after mid-October with shredded scrap from $220/mt cfr Nhava Sheva to above $300/mt cfr in two months.
India is optimistic about generating ferrous scrap locally by recycling of ships to reduce scrap imports, however, there are many headwinds and its immediate impact is very limited as many yards are in the process of upgrading their facility as per the standards of Hong Kong Convention.