India's Scrap Metal Imports Rebound in May
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After four months of decline, India's scrap metal imports increased by 15% in May compared to the previous month, reaching 0.61 million tons.
This increase happened because Indian buyers stocked up from mid-April to early May, expecting higher steel demand after the general elections ended on June 4.
India usually imports most of its iron scrap from the US, UK, and Europe. However, in May, the highest volume of imports came from the United Arab Emirates (UAE), despite an export duty of USD 109 per ton imposed by the UAE government.
In recent months, India has preferred importing from the UAE over the US and Europe due to shorter shipping times and increased freight rates from distant countries.
The rise in freight rates was caused by a recent container supply crisis, peak shipping season, longer transit times due to Red Sea diversions, and bad weather in Asia. Shipping companies are skipping or shortening port stops to stay on schedule, worsening the container shortage.
A scrap trader based in Mumbai said, "The UAE is our best option for sourcing scrap because of shorter lead times and the ability to buy as needed. Port congestion and high freight rates after US tariffs on China in early May have made sourcing even from Far East countries like Hong Kong, Malaysia, or Singapore quite difficult for us."
After the US tariff announcement, Chinese manufacturers redirected their shipments to the US to deliver 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 pushed UAE scrap sellers to look for other markets like India and Pakistan.
Industry participants suggest that scrap exporters might be avoiding export duties through misdeclaration, taking advantage of weak enforcement.
Stainless steel scrap made up about 15% of India's total scrap imports in May, amounting to 0.10 million tons.
From January to May, India's total iron scrap imports reached 3.95 million tons, a 16% decrease compared to the same period last year.
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