Indian Steel companies’ dependence on imported ferrous scrap has risen in recent years due to restricted domestic supply of iron ore in the country, resulting in production plunge in sponge iron.
Other reasons for increase in imports include:
- Rising power prices pan India
- Poor quality of sponge iron available in the market
- Growing demand
- Mining ban
In FY 2012, India’s total ferrous scrap import stood at around 6.03 MnT. In FY 2013 the scrap imports jumped to 7.5 MnT which shows almost 25% growth in a year. It also substantiates a sharp jump of almost 50 percent from FY 2011, which stood at around 4 MnT. Major scrap exporting countries to India are Europe, US, Middle East, Africa and South Africa.
Scrap imports from South Africa moves up significantly in Q4 FY 2013
In Q4 FY 2013, South Africa has dominated Indian imported scrap market, with nearly 0.32 MnT (18%) of the total imports followed by UAE, which has contributed 0.26 MnT (~ 14.3%), UK 0.23 MnT (~12.6%) and US 0.19 MnT (~10.6%). All these countries contribute majorly in imported ferrous scrap in to India. Total ferrous scrap imports in India under chapter 72 of ITC HS CODE List (HS – Harmonized System) in the month of January stands at around 0.68 MnT, in February 0.56 MnT and 0.6 MnT in March. In Q4 FY 2013, scrap imports from South Africa to Indian ports stand at around 0.32 MnT out of which highest quantity has been imported at Ludhiana port (near about 0.08 MnT). Kolkata port has received nearly 0.05 MnT, JNPT – 0.05 MnT, Mundra – 0.05 MnT and remaining at other ports.