India's Scrap Imports Rebound in May
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After four consecutive months of decline, India's scrap imports in May rose by 15% from the previous month, reaching 0.61 million tons.
This increase was due to Indian buyers replenishing stocks from mid-April to early May, anticipating higher steel demand following the conclusion of the general elections on June 4.
India usually imports most of its iron scrap from the USA, the UK, and Europe. However, in May, the highest volume of imports came from the United Arab Emirates (UAE), despite the UAE government imposing an export tax of $109 per ton.
In recent months, India has preferred importing from the UAE over the USA and Europe due to shorter shipping times and a surge in freight rates from distant countries.
This increase in freight rates has been driven by a recent container supply crisis, the peak shipping season, longer transit times due to the Red Sea diversion, and bad weather in Asia. Shipping lines are skipping or shortening port stops to stay on schedule, worsening the container shortage.
“The UAE is now our best option for sourcing scrap due to shorter lead times and the ability to buy as needed. Port congestion and high freight rates following US tariffs on China in early May have made sourcing from even Far East countries like Hong Kong, Malaysia, or Singapore quite challenging for us,” said a scrap dealer based in Mumbai.
Following the US tariff announcement, Chinese producers redirected their shipments to the world's largest economy to supply products before the tariffs took effect.
On the supply side, slow domestic steel demand in the UAE and other Middle Eastern and North African countries has prompted UAE scrap sellers to seek alternative markets such as India and Pakistan.
According to industry participants, scrap exporters are reportedly evading export taxes through false declarations, taking advantage of weak enforcement.
Stainless steel scrap accounted for about 15% of India's total scrap imports in May, at 0.10 million tons.
From January to May, India's total iron scrap imports reached 3.95 million tons, down 16% compared to the same period last year.
After four consecutive months of decline, India's scrap imports in May rose by 15% from the previous month, reaching 0.61 million tons.
This increase was due to Indian buyers replenishing stocks from mid-April to early May, anticipating higher steel demand following the conclusion of the general elections on June 4.
India usually imports most of its iron scrap from the USA, the UK, and Europe. However, in May, the highest volume of imports came from the United Arab Emirates (UAE), despite the UAE government imposing an export tax of $109 per ton.
In recent months, India has preferred importing from the UAE over the USA and Europe due to shorter shipping times and a surge in freight rates from distant countries.
This increase in freight rates has been driven by a recent container supply crisis, the peak shipping season, longer transit times due to the Red Sea diversion, and bad weather in Asia. Shipping lines are skipping or shortening port stops to stay on schedule, worsening the container shortage.
“The UAE is now our best option for sourcing scrap due to shorter lead times and the ability to buy as needed. Port congestion and high freight rates following US tariffs on China in early May have made sourcing from even Far East countries like Hong Kong, Malaysia, or Singapore quite challenging for us,” said a scrap dealer based in Mumbai.
Following the US tariff announcement, Chinese producers redirected their shipments to the world's largest economy to supply products before the tariffs took effect.
On the supply side, slow domestic steel demand in the UAE and other Middle Eastern and North African countries has prompted UAE scrap sellers to seek alternative markets such as India and Pakistan.
According to industry participants, scrap exporters are reportedly evading export taxes through false declarations, taking advantage of weak enforcement.
Stainless steel scrap accounted for about 15% of India's total scrap imports in May, at 0.10 million tons.
From January to May, India's total iron scrap imports reached 3.95 million tons, down 16% compared to the same period last year.
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