India’s ferrous scrap imports have increased by 96% to 1.06 million tons in September 2022 from 0.54 million tons in August 2022, compared to 0.25 million tons in September Deep Sea imports have a share of 19% (0.20 million tons), with increase of 42% from 2.88 million tons in September 2021. There are a few factors that are responsible for to increase in India’s ferrous scrap imports are as:
Turkiye’s steel mills have slowed in their procurement. Its imports have decreased from 2.22 million tons to 1.59 million tons due to rising energy prices and production cuts. Turkiye is the major supplier to Europe. Lower demand in Europe is another cause of the reduction of Turkiye’s steel production, and its output decreased by 21% to 28 million tons.
Pakistan and Bangladesh are ferrous scrap importers, currently not showing interest in ferrous scrap buying. Depreciation in the currency of Pakistan, high energy prices, liquidity crunch, floods, and political turmoil, are all responsible for shutting the small-scale steel mills. These also caused production cuts or the temporary shut of a few large-scale steel mills. Bangladesh is facing the same as the depreciation of currency, a liquidity crunch, and an electricity supply problem, which decreased the demand for scrap.
Freight charges for bulk buying are 30-40 dollars per ton lower than containerized buying. Bulk buying will sustain in India as Turkiye, Bangladesh, and Pakistan are not in a position for a remarkable/great buying in the ferrous scrap market until November.
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