Monthly Archives: May 2018

U.S. to Implement Steel and Aluminium Tariffs on its Exempted Allies EU, Mexico and Canada

The Trump government has fired the opening shot in the trade war with three of its biggest trading partners by announcing levy of hefty tariffs on steel and aluminum imports from EU (European Union), Mexico, and Canada that will go into effect from Thursday midnight. Steel imports from these countries will be taxed at 25% and aluminum imports at 10%.

In Mar’18, Trump government has announced tariffs on steel and aluminum imports from all the countries at the rate of 25% and 10% respectively, exempting its key trade allies, EU, Mexico, and Canada for two months till 1 Jun’18.

While all the three countries were in talks with U.S. to seek exemptions from the tariffs, this move by the White House has set the stage for a round of tit-for-tat tariffs among some of the world’s largest economies.

The aggressive response of EU, Canada, and Mexico

As per the market reports, the targeted countries have responded almost immediately to the Trump’s aggressive decision. While Mexico announced that it will impose tariffs on American imports in retaliation, EU Trade Commissioner Cecilia Malmström said in a statement that Europe would “impose rebalancing measures,” likely meaning some kind of retaliatory tariff on U.S. imports, and take any other “necessary steps to protect the EU market.” Canada is expected to take its own measures.

The move by the U.S. and swift reaction from allies came after U.S. Commerce Secretary, Mr. Wilbur Ross said that the negotiations with the EU in recent months had gone nowhere and that discussions with Canada and Mexico to update the North American Free Trade Agreement were taking too long.

The likely consequences

The immediate impact of these tariffs will be mixed, but probably on net negative. U.S. steel and aluminum industries will now face less international competition, which means they’ll be hiring and producing more. However, the major impact will be seen in U.S.’s construction and manufacturing sector that will have increased raw material costs (aluminum and steel) in the absence of cheap imports.

The EU, Canada, and Mexico are the United States’ first-, third-, and fourth-largest trading partners. As per the market reports, while total U.S. trade with the EU last year was worth almost USD 720 billion, its trade with NAFTA (North American Free Trade Agreement) partners Canada and Mexico, which have become integrated into many US companies’ supply chains, was worth more than USD 1.1 trillion. Thus, while steel and aluminum tariffs alone aren’t the end of the world, trade war defined as the two sides getting locked in a cycle of retaliatory tariff increases — is.

A serious decline in trade between the U.S. and these three partners would do immense damage to the U.S. economy and create major consequences for the rest of the world. And even if we don’t get there, the tariffs are likely to do serious political damage to America’s relationship with its neighbours and most important European allies.

While Trump government has announced stiff aluminium and steel tariffs on all the countries, Argentina, Brazil, Australia, and South Korea are exempted from these levies. However, these exempted countries are imposed with quotas where a fixed quantity of steel and aluminium as decided by the Trump government can only be imported into U.S. from these countries.


Indian Scrap Importers to Resume Trades Shortly -Reports

In recent conversations with market participants, SteelMint learned that Indian scrap importers are now expecting an increase in scrap import activities within next 7-10 days. Towards closing of the last week scrap prices moved down suddenly amid falling global scrap prices and remained almost stable in this week. Despite which, on the effect of currency depreciation and concerns over arriving monsoons not much trades are being concluded in the market.

Most of the participants remain in the ‘wait and watch’ mode to observe the clear price direction in the global market. However, US suppliers remain hesitant to offer materials at corrected levels.

Price assessment of UK/USA origin containerized Shredded stood at USD 380-385/MT, CFR Nhava Sheva. South African HMS 1&2 assessed at around USD 368-370/MT and Dubai HMS 1 at USD 370-375/MT, CFR Nhava Sheva. Minor trades for West African and European HMS concluded in the range of USD 345-355/MT, CFR depending on the quality of scrap in containers. These prices have moved down by USD 5-7/MT on W-o-W basis.

Turkey imported scrap prices rebound in recent deals – Imported scrap prices have recovered in the recent trades concluded in Turkey after witnessing a decline in earlier trades reported. According to SteelMint’s assessment, recent deals concluded for further June deliveries at corrected prices pushed the price assessment for USA origin HMS 1&2 (80:20) scrap up at around USD 338-340/MT, CFR Turkey up USD 4-5/MT against last report yesterday. According to participants, Turkey-based importers are likely to book around 30-35 cargoes in the upcoming one month’s period amid less inventories and supportive weather conditions.

Global scrap prices outlook steady for June – Optimism on improving buying interest in the global market likely to keep scrap prices range bounded without sharp deviation on either side. However, demand for premium grade scrap likely to surge sharply resulting in the price rise as compared to other medium and low-grade scrap.

Indian domestic scrap price scenario – Domestic scrap prices in India observed stability in the western region, Downtrend in the Southern regions while uptrend in Northern regions on the weekly comparison. Currently, HMS (80:20) prices in Mumbai assessed at INR 27,400-27,600/MT (Stable W-o-W), in Chennai INR 26,400-26,600/MT (-INR 200 W-o-W) these are basic prices, GST @ 18% extra.

Ship breaking market at Alang region witnessed firmer sentiments amid few sales concluded last week. Ship cutting prices have moved up by USD 10/LDT on W-o-W basis and assessed at USD 430/LDT for general dry bulk cargo; at USD 450/LDT for containers and at USD 440/LDT for tankers on CNF India basis respectively. Two LPG type vessel sold each of 5,798 LDT and 5,787 LDT at a reported price of USD 467.5/LDT and USD 468/LDT last week, CNF India.


Indian Ferro Alloy Exporters Worried Over Possible Sanctions on Iran

Iran, one of the largest steel producer in MENA region has recently faced backlash from many countries owing to the US sanctions. Recently India’s largest commercial bank SBI has alerted all of its offices on the issue of dealing with the companies doing business with Russia and Iran which are battling sanctions.

All branches have been directed to refrain from taking new exposure in any form, such as letter of credit and bank guarantee, for any transaction related to Iran with immediate effect, according to a SBI internal communique.

Owing to which Indian ferro alloys exporters are worried about doing business with Iran, as Iran is considered to be an emerging market for Indian ferro alloys. India has been exporting ferro alloys mainly ferro manganese to Iran.

During CY’17, Iran imported around 30,000 MT ferro manganese from India and in current year till Feb’18 the nation has already imported around 10,000 MT from India.

Major Importers of Indian Ferro Manganese

Countries Quantity % Share
United Arab Emirates 0.19 19.01
Iran 0.18 18.35
Taiwan 0.08 7.77
Japan 0.08 7.63
Indonesia 0.06 6.29
Italy 0.06 5.62
Pakistan 0.05 4.58
Netherland 0.03 3.1
South Korea 0.03 3.01
Kuwait 0.03 2.8
Brazil 0.02 2.18
Others 0.19 19.65
Grand Total 0.98 100

Quantity in MnT
Source: SteelMint

Post Sanctions:

1- Post sanctions it is believed that the ferro alloys export to Iran will come down as a major chunk of export will be hit because of it.

2- Direct transaction with Iranian party will stop as no bank will be doing business with Iran.

3- Sellers are likely to look for other options and routes to export ferro alloys to Iran. It is expected that brokers or middle man might become a vital resource to do business with Iran.


Daily Update: Indian Sponge & Billet Market

Today, Indian Billet prices have increased in major markets amid active inquiries and the price rise have been noticed by INR 100-400/MT. However, Sponge iron prices have registered volatility in which prices in Eastern region rise by INR 100-400/MT while in Central India it declined marginally over limited buying through inductions with an anticipation further fall in prices post the power cut of Raigarh based inductions.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 36,000-40,100/MT (USD 534-595) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 20,400-22,400/MT (USD 302-332); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

On 31st May 2018 (Thursday) INR to USD exchange rate stood at INR 67.36

BSE Sensex closed at 35,322(+416) on Thursday, as against last day (Wednesday) at 34,906(-43)

Raw material

SAIL’s crude steel production up by 4% in FY18 & stood at 15.021 MT as against 14.49 MT in FY17.

Semi finished

MMTC- India’s largest and state owned trading house, has floated a fresh export tender of 40,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids was 14:30 hrs on 06 Jun’18.

RSP (Rourkela Steel Plant) tender held today (31st May’18) to sell about 7,200 MT steel grade Pig iron. The base price of the tender was at INR 29,400/MT and only 400 MT quantity have been sold out.

In West Bengal – Durgapur, big manufacturers have increased sponge offers by INR 400/MT D-o-D; P-DRI at INR 20,800-21,000/MT & C-DRI at INR 22,300-22,500/MT ex-plant

Raipur, Central India based Integrated plants offering Sponge P-DRI at INR 19,600-19,700/MT & Sponge DR CLO grade at INR 22,500-22,700/MT ex-plant

Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 21,000/MT & billet at INR 36,200-36,300/MT ex-plant.

BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 20,400/MT & 20,800/MT ex-plant, Karnataka; an official reported.

South India based Cauvery Iron & Steel offers FeM 80 P-DRI & billet at INR 20,500/MT & INR 36,000/MT. Also offering 28 MM Rebars at INR 38,000/MT. prices are ex-plant & excluding GST.

Finish Long

North Region based Rathi Steels have unchanged their prices d-o-d basis and offering 12 mm Rebars at INR 45,600/MT, excluding 18% GST.-

Gujarat Based, Keyur Ispat Ltd has unchanged their prices on day basis & offering 20mm Rebars at INR 48,600/MT FoR & including GST at 18% & Billet at INR 37,500/MT, ex-work & excluding GST.

Jalna based rebar manufacturer – SRJ Peety Steels Pvt Ltd branding Shree Om TMT unchanged prices on day basis and offering basic Rebars at INR 39,200/MT, ex-work & excluding GST.

The suppliers in Raipur have slightly increased trade discount on Wire rod to around INR 900-1,100/MT, size – 5.5 MM.

South Region – Chennai based MIL Steel and Power Limited offering billet at INR 36,000/MT with immediate payment term, ex-work & excluding GST.

Reference prices as on 31st May 2018

  Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Chennai HMS(80:20) 26,500 26,400 26,600 – 200 26,700 26,200
Ex-Mumbai HMS(80:20) 27,500 27,400 27,600 – 100 27,500 26,800
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 22,400 22,300 22,500 + 400 21,700 23,000
Ex-Rourkela Mix, FeM 80%, +/-1 21,000 20,900 21,000 + 200 21,000 21,200
Ex-Raipur Mix, FeM 80%, +/-1 21,700 21,600 21,800 – 50 22,000 22,400
Ex-Bellary Lumps, FeM 80%, +/-1 20,400 20,300 20,500 – 100 20,800 19,500
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 20,900 20,800 21,000 + 400 20,300 21,500
Ex-Raipur Lumps, FeM 80%, +/-1 19,700 19,600 19,800 + 50 19,800 20,400
Ex-Bellary Lumps, FeM 80%, +/-1 19,700 19,600 19,800 – 100 19,800 18,700
Ex-Hyderabad Lumps, FeM 80%, +/-1 20,400 20,300 20,500   0 20,400 19,400
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 39,300 39,200 39,400 + 400 38,500 38,400
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 36,700 36,600 36,800 + 200 36,000 36,400
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 36,000 35,900 36,100   0 35,500 35,000
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 36,150 36,100 36,200 + 100 35,950 34,800
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 37,000 36,900 37,100 + 200 36,500 36,600
Ex-Chennai 3.5 x 4.5 Inch, IS 2830 36,000 35,900 36,100 – 300 35,500 36,500
Ex-Hyderabad 3.5 x 4.5 Inch, IS 2830 35,700 35,600 35,800   0 36,200 36,000
Billet Ex-Mandi Gobindgarh 125×125 mm, IS 2831 40,100 40,000 40,300 + 400 39,400 39,100
Ex-Durgapur 125×125 mm, IS 2831 37,300 36,200 37,400 + 300 36,600 36,800
Ex-Rourkela 125×125 mm, IS 2831 36,400 36,300 36,500   0 36,100 35,800
Ex-Raipur 125×125 mm, IS 2831 37,250 37,200 37,300 + 100 36,900 35,800
Ex-Mumbai 125×125 mm, IS 2831 37,300 37,300 37,400 + 200 37,100 37,100
Ex-Chennai 125×125 mm, IS 2831 36,500 36,400 36,600 – 200 36,000 37,000
Ex-Hyderabad 125×125 mm, IS 2831 36,000 35,900 36,100   0 36,500 36,250
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 44,300 44,100 44,500   0 43,000 42,200
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 41,800 41,600 42,000 + 200 41,300 41,500
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 41,700 41,500 41,900 + 100 40,900 39,600
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 40,700 40,300 40,800   0 40,800 40,900
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 40,800 40,500 41,000 – 200 40,500 41,200
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 40,500 40,300 40,700   0 41,000 40,750

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research


Bangladesh: Domestic Steel Prices Increase Marginally

Local Steel – Rebar prices in Bangladesh rally over improved demand amid ongoing Ramadan festival.

As per SteelMint’s weekly assessment, local Rebar prices in Bangladesh is increasing gradually by BDT 500-1,000/MT (USD 6-12/MT) to BDT 59,500-60,000/MT (USD 706-712/MT) against last week which was being traded around BDT 59,000/MT (USD 700/MT), reported by medium-scale producers.

SteelMint learned from market participants that finished steel inquiries got active from past mid week with considering prospective logistical issues as movement of heavy vehicles will be restricted during the last week of Ramadan festival, thus this has led to better procurement among stockiest and from projects as well.

Whereas as per sources, large mills like BSRM have not changed their Rebar prices on a weekly basis and offering around BDT 63,000-64,000/MT ex-works & for 12 mm.

In context to the price movement of raw materials – local Billet traded firm at around BDT 52,000/MT. Although local melting scrap registered slight fall to BDT 37,000/MT against previous week at BDT 37,500-38,000/MT & Ship breaking plate, size – 16 mm assessed at BDT 42,500-43,000/MT, as per participants.

Raw material purchase active

The major producers in Chhittagong & Dhaka, Bangladesh have resumed their raw material purchases after a long span. As per trade participants, the steel mills have booked good quantities of Scrap & Sponge iron in last one week.

The average purchase prices of Sponge iron – Indian origin reported at around USD 345-348/MT CPT Benapole port (dry port of India & Bangladesh). On CFR Chhittagong basis it will cost at around USD 365/MT.

Further, ferrous scrap is being booked through containers at an average price of USD 395-398/MT CFR Chhittagong, for Shredded 211 of UK origin, delivery will be done during Jun-Jul’18.


India: Durgapur Pellet Prices Climb to 4-Month High

Rake availability issues in eastern India have accelerated pellet prices in Durgapur region further.

SteelMint learned from market sources that Durgapur based pellet makers have raised their offer second time this week. Prices have gone up by INR 250/MT to INR 6,500/MT (delivered) against last assessment of INR 6,200-6,300/MT (delivered) made at the beginning of this week. In a week’s time prices have increased by almost INR 700/MT.

SteelMint has also learned from the sources that one of the Durgapur based Pellet makers concluded a deal of 5,000MT pellets at INR 6,500/MT.

According to SteelMint’s assessment, current prices are hovering at almost 4-month high as towards the end of Jan’18 prices were hovering in the range of INR 6,700-6,800/MT.

Trade sources highlighted that plants are currently facing extremely low iron ore rake availability in the eastern region which has hampered material movement. Market participants reported that most of the rakes diverted for coal for govt. owned power units. As per sources, the scenario might continue for next 20-25 days.

P-DRI prices have also increased to INR 20,900/MT (ex-Durgapur) against INR 20,300/MT a week ago.


Key Takeaways BIR World Recycling Convention & Exhibition-2018

Bureau of International Recycling (BIR) organized World Recycling Convention & Exhibition in Barcelona, Spain spanning 27th-30 May’18. In Ferrous Division, many eminent speakers discussed their sentiments on key markets.

Key findings were as follows:

Economic slowdown in Turkey impacting scrap prices – World’s leading importer of ferrous scrap- Turkey, has been encountering “very difficult” economic conditions, including the devaluation of its currency, and prices have headed lower as a result. According to Ferrous Division board member Frank Heukeshoven of TSR Recycling GmbH & Co. KG in Germany, Turkish sales of rebar have been slower both domestically and in the export market. George Adams of US-based SA Recycling expected scrap prices to soften further for June, at least in part because Turkey has not been in a position to buy its normal volumes.

Japanese scrap prices likely to remain supported – Although demand for construction steel was likely to remain strong both before and beyond the 2020 Olympic Games in Tokyo, Japanese scrap price movements were likely to be “sideways” at best in the near future because of all of the uncertainties affecting the market, said Hisatoshi Kojo of Metz Corporation.

Indian scrap imports to rise with increasing steel demand – As for the Indian Sub-Continent, Mr. Zain Nathani of the Nathani Group of Companies anticipated that ferrous scrap imports into the region would rise “substantially” this year amid “vibrant” steel demand.

China’s increasing scrap usage in steel making – The BIR Ferrous Division’s Statistics Advisor Rolf Willeke highlighted growth last year in both world crude steel output and global steel scrap use, with China consuming more scrap than any other country with its total of 147.9 MnT. Mr. Adams calculated that China had installed or was in the process of installing 130 new shredders since the beginning of 2017, taking the country’s overall tally to more than 200. In the future, he added, China could need as many as 500 shredders.

Increasing use of scrap in steelmaking worldwide – In delivering the ninth edition of “World Steel Recycling in Figures”, the BIR Ferrous Division’s Statistics Advisor Rolf Willeke highlighted growth last year in both world crude steel output and global steel scrap use. World crude steel production increased by 3.9% last year to 1.69 BnT, according to world steel association. It is interesting to note that the global increase in basic oxygen furnace production (+2.3% to 1.228 BnT) was bettered by the upturn in scrap-intensive electric furnace production (+8% to around 445 MnT).


Indian Ferro Manganese Prices Remain Firm on Rising Overseas Demand

Indian Ferro Manganese prices witnessed a slight uptick as sellers gain confidence on rising overseas inquiries.

There has been a bullish sentiment among Ferro Manganese producers on strong steel fundamental in the domestic market coupled with rising overseas demand as Indian offers are competitive at the moment.

“Ferro Manganese prices have found support on healthy trading activity from both domestic and overseas market,” said a producer source while stating that the deals are being concluded at elevated levels. Despite a decline in ore prices, the commodity has been performing well, he added further.

SteelMint assessed Ferro Manganese offers at INR 74,000/MT (Ex-Raipur) and INR 74,000-75,000/MT (Ex-Durgapur).

SteelMint learned that rising inquiries from the overseas have been the key influencer of the Ferro Manganese prices in India as well. There have been constant inquiries from Middle-East as well as other Asian countries and a weaker Rupee has encouraged exporters to keep prices stable and higher volumes while deciding against increasing export offers.

Export offers of Ferro Manganese are assessed at USD 1075/MT for 70% grade and USD 1150/MT for 75% grade.

On the future outlook, market participants expect Ferro Manganese prices to maintain stability while any slight movement cannot be ruled out.


SAIL’s Pig iron Auction Receives Subdued Response on Anticipation That Prices May Fall

Indian state owned steel maker Steel Authority of India Ltd (SAIL) pig iron auction fetched weak response on anticipation that prices may correct.

SAIL had scheduled an auction for sale of about 7,400 MT steel grade pig iron from its Rourkela plant. The auction’s bid due date was scheduled today i.e. 31st May 2018.

As per reports, RSP has received poor response in this auction and company was able to sell only 400 MT out of the offered quantity of 7,400 MT. The material have been sold at the base price of INR 29,400/MT, participants reported.

Notably, Indian domestic pig iron prices have been rising since December 2017. Prices have increased by about INR 4,000/MT (USD 60/MT) in last 4-5 month’s.

Reasons which indicates pig iron prices may fall further –

1. Market awaits NINL export tender response: MMTC had floated export tender for 40,000 MT pig iron which got expired on 28th May’18. As per fresh update received by SteelMint, the highest bid for the tender was around USD 390-395/MT, FoB although company was looking for levels of around USD 400/MT. Thus, the company may cancel the tender and company has floated a fresh tender for same quantity which due date is 6th Jun’18.

2. Market feels prices may fall on higher production: After the NINL’s capital repair works in his blast furnace, production have increased to two fold and recorded highest ever at close to 3,000 MT of hot metal in a day just after the operations resumed. Thus with the higher production of NINL, pig iron supply in Indian domestic market has increased resulting downtrend in prices.

3. High disparity between domestic and export realisations: Indian domestic pig iron prices are trading at a premium of at least INR 2,500 – 3,000/MT (USD 37-45) against export prices. Domestic pig iron prices are hovering at around INR 29,500-30,000/MT ( ex-mill, Cuttack) where as exports demand is at around USD 390-395/MT FOB, which is equivalent to INR 26,300- 26,700/MT

Latest offers through producers

Jindal Steel has reduced offers – Pooled iron at INR 28,300-28,500/MT & Granulated Pig iron (Panther shots) at INR 29,300-29,500/MT ex-plant, Odisha. The company also offer steel grade Pig iron from its Raigarh unit at INR 30,500/MT ex-plant.

Durgapur based Neo Metaliks has reported latest offers for steel grade Pig iron at around INR 31,000/MT against last trading at INR 31,200/MT ex-plant. The plant also offered material in bulk quantity at around INR 30,700/MT

Ludhiana, North India based trade participants reported fall in pig iron prices over low market trade activities amid improved supply; Steel & Foundry grade pig iron offers at INR 31,400/MT & INR 34,100/MT FoR & excluding 18% GST.

South India – Pig iron prices remain firm and are assessed at INR 30,300-30,500/MT ex-plant, Vizag.

Tata Metaliks yet to open fresh offers for June 2018 deliveries. In May the foundry grade material was offered at around INR 33,800/MT ex-Kharagpur, East India.

The latest offer for the Premium HCC is assessed at around USD 206.8/MT CNF India, incline by around USD 8/MT, W-o-W.


Sweden: Ferrous Scrap Exports Fall 22% Y-o-Y in Q1 2018

Sweden – one of the major scrap exporter country among EU-28 has witnessed a significant fall by 22% Y-o-Y in its scrap exports in Q1 2018 as compared with its scrap exports recorded in Q1 2017. As per recent customs data, Sweden exported 283,966 MT ferrous scrap in Q1 2018 as against 366,296 MT ferrous scrap exports during Q1 2017.

The sharp decline in scrap imports from the major importers like United States and Germany could have resulted in fall in Sweden scrap exports in Q1 2018. The demand slowed down amid high prices as compared to last year for Sweden scrap in Q1’18. While amid less clarity on section 232 USA witnessed sharp fall in scrap imports registering 65% Y-o-Y fall in Q1 2017. Notably, exports recorded in Q1 2017 stood highest on quarterly basis in 2017.

In line with this, Sweden’s scrap exports fell by 22% Q-o-Q as against 363,353 MT exports recorded in Q4 2017.

Turkey remained largest scrap importer from Sweden in Q1 2018 – Turkey imported highest 77,294 MT (+12% Y-o-Y) ferrous scrap from Sweden in Q1’18 occupying almost 27% share of total scrap exports. Norway stepped up to second largest importer position surpassing United States. Norway imported 41,229 MT occupying 15% share while US imported 31,948 MT from Sweden. Followed by other prominent importers like Pakistan (29,515 MT), Germany (13,554 MT) and Denmark (17,939 MT).

Sweden witnessed 12% M-o-M fall in scrap exports in Mar’18 – Sweden exported 92,096 MT ferrous scrap in Mar’18 as against 105,055 MT exports recorded in Feb’18. The country witnessed 12% M-o-M fall in Mar’18 while in ferrous scrap exports tumbled 27% Y-o-Y as against 125,940 MT exports in Mar’17.

Turkey topmost importer of scrap in Feb’18 witnessed nil scrap imports in Mar’18 from Sweden. While other major importers like US and Norway witnessed surge in scrap imports from Sweden importing 26,463 MT (+382% M-o-M) and 18,060 MT (+105% M-o-M) scrap respectively in Mar’18. Followed by other prominent importers like Pakistan (10,190 MT), Denmark (4,908 MT) and Germany (4,349 MT).

According to World Steel Association, Sweden’s crude steel production stood nearly stable in Q1 2018. As against 1.66 MnT steel produced during Q1 2017, crude steel production in Sweden remained at 1.63 MnT in Q1 2018.

Country-wise Sweden ferrous scrap exports –

Country Q1 2018 Q1 2017 % Y-o-Y Change  Q4 2017 % Q-o-Q Change Mar’18 Feb’18 % M-o-M Change
Turkey 77,294 69,150 11.78% 127,089 -39.18% 50,038 -100.00%
United States 31,948 92,237 -65.36% 27,007 18.30% 26,463 5,485 382.46%
Norway 41,229 35,933 14.74% 34,347 20.04% 18,060 8,783 105.62%
Germany 13,554 29,450 -53.98% 21,424 -36.73% 4,349 4,634 -6.15%
Pakistan 29,515 25,000 18.06% 25,770 14.53% 10,190 8,223 23.92%
Denmark 17,939 20,637 -13.07% 22,509 -20.30% 4,908 2,862 71.49%
Others 72,487 93,889 -22.80% 105,207 -31.10% 28,126 25,030 12.37%
Total 283,966 366,296 -22.48% 363,353 -21.85% 92,096 105,055 -12.34%

Quantity in MT, 
Source: SteelMint Stats