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Scrap Insight

30 Mar2013

MSTC plans to set up first Auto Shredding Plant in India Shredded scrap is regarded as important input material for the secondary steel industry. Metal Scrap Trade Corporation Limited (MSTC) is preparing to set up India’s first of its kind Auto Shredding Plant for the production of ferrous and non-ferrous shredded scrap. Motive behind setting up the plant:

In India Construction and automobile sector attracts the major steel requirement

But the country lacks organised auto-grade scrap shredding technologies for processing of metal scrap which results in poor yield as compared to international standards.

In India secondary steel producers make use of shredded scrap for production of steel by the Electric Arc Furnace method or the Induction Furnace method. Up till now Scrap goods which contain steel can be recycled through these methods.

Hence, MSTC plans to derive commercial and economic value through this pilot project worth Rs 120 Crore.

To execute the plan, MSTC is approaching by following preparations:•

MSTC invites Expression of Interest (EOI) from interested parties for Supply of raw materials in bulk on a regular basis and Joint venture

The plant will processes End of Life Vehicles (ELVs) and other White Goods for scrap production in an eco-friendly manner

The output of the plant will be considered as the raw material for secondary steel production

Proposed capacity of the main Shredding Plant is expected to be 40 tons per hour (TPH)

Gujarat is selected as the set up site for the plant with varied raw material (ELV & White Goods) collection centers from the border of Ahmadabad, Mumbai, Kolhapur, Indore and Jaipur.

Flow Chart to understand Auto shredding process: Iron

Automobiles\ white goods (Raw Materials)

Recycling Process and separation

Copper

Other metals

Monthly Avg. Prices Comparision Month Grade Dec'12 Jan'13 Feb'13 Mar'13 Domestic Scrap* HMS 1&2 22,300 22,800 22600 22500 Imported Scrap** HMS 1&2 393 400 403 403 Sponge Iron*** 75FeM 20,300 20,200 20,000 20,300 INR/USD 54.62 54.32 53.8 54.28 *-Ex Mumbai,basic prices (INR/t) **-CNF Mumbai (US$/t) ***-Delivered Mumbai,incld. Freight. CST &Excise Extra

Surabhi Singh Analyst surabhi@steelmint.com +91 9575100530


Scrap Insight 30 Mar 2013

Scrap imports to India marginally up in March 2013 India imported total scrap of about 405000 MT as on March 19th up by about 13000 MT from 392000 MT as on 19th Feb. United Arab Emirates (UAE) left behind South Africa as becoming the highest scrap importing source to India in the month of March. About 58600MT of scarp was imported from 01 Feb’13 to 19 Feb ’13 and about 63600 MT of scrap be imported in the same duration of March from UAE. Whereas, scrap imports from S. Africa was around 62300 MT in Feb. and 62100 MT in March in the same duration as above.

India Imported Scrap (CH-7204, in MT) From 01 FEB'13 TO 19 FEB'13 Indian port JNPT has registered a maximum hike by 24000MT scrap im- Country Chennai JNPT Ludhiana Vizag Other Total Quantity ports in between 01March-19 Mar- Australia 763 257 7929 8948 ch’2013 to 90700 MT from 66500 MT South Africa 5654 6831 11739 38149 62374 in between 01Feb-19Feb’2013. United Arab Emirates However maximum scrap is imported United Kingdom via Chennai port in the same duration United States of Feb’13 (about 101500 MT) and Mar- Other ch’13 (about 101000 MT) as above. Total Quantity MENA Scrap Market Round Up TURKEY in Brief: In the mid of the March Turkish mills were successful in fetching scrap material from other regions on receiving higher scrap import offers from US counterpart. Turkish mills are exempt-

2485 16383 28120 5051 28773 7672 35720 30374 101515 66568

24706 884 3495 6061 4031 668 33220 5491 77191 13104

14169 12033 8936 177163 133884

58628 54760 50079 157473 392262

India Imported Scrap (CH-7204, in MT) From 01 MAR'13 TO 19 MAR'13 Chennai JNPT Ludhiana Vizag Other Country Total Quantity Australia 30669 170 98 990 3599 35527 South Africa 4401 16177 16509 25049 62136 United Arab Emirates 2772 18092 19306 511 23008 63689 United Kingdom 18752 8750 2958 9478 16235 56173 United States 8267 12970 2328 4933 14230 42727 Other 36410 34562 28092 5794 40179 145037 Total Quantity 101271 90722 69290 21706 122300 405289

ing themselves from any bulk buying of scrap in the last week of March. They are more concern over selling of finish steel products.

Graphical representation of Scrap (CH-7204) in MT by India

Import prices for HMS 1&2 scrap grade corrected up to $394-396/ MT CFR Turkish ports down by $10/MT m-o-m basis. , whereas A3 grade scrap offers from CIS region corrected up to $361-363/MT FOB Black sea down by $10/MT m-o-m basis. W.Africa (Ghana) in Brief: The Parliament of Ghana has adopted a report of the Committee on Subsidiary Legislation that bans the export of ferrous scrap metals. The report features Ferrous Scrap Metals Prohibition of Export Regulations 2013, LI.220. The Chairman of the Committee on the Subsidiary Legislation, Osei Bonsu Amoah ensures that this ban will secure the required quantities of the scrap metals for local operating companies. Illegal exports of scrap metal from Ghana totaled 60 million cedis ($40.1 million) last year depriving the West African nation’s steelmakers of their main source of raw material as per sources.

450000

Q u a n t i t y

400000

1Feb-19 feb'13 1Mar-19Mar'13

350000 300000 250000 200000 150000 100000 50000 0

Countries

Imported


Scrap Insight

30 Mar 2013

SteelMint Average Monthly Ferrous Scrap Prices (Reference Price US$/MT) Country

Grade

India Import HMS 1&2 (80:20)

Port CFR Nhava Sheva

Turkey Import HMS 1&2 (80:20) CFR Turky Major Ports USA

HMS 1&2 (80:20)

FOB US East Coast

Mar' 13 Feb' 13 Jan' 13 403

403

400

400

404

406

365

363

367

International Ferrous Scrap Reference Prices - March 2013 Country

Price M-o-M ($/MT) Change

Exchange Rates Currency INR

54.2865

53.8776

0.7798

0.7601

JPY

94.2150

92.3234

GBP

0.6577

0.6593

TRY

1.8073

1.7967

CNY

6.2110

6.2272

EURO

U.S.A (Monthly) 368 412.5 383

440

-8 27.5 -13 -5

420

International Scrap Prices Comparison

420 400 $/MT

HMS (80:20), Ex Midwest Mills Shredded, Ex Midwest Mills Plate & Structures, Ex Midwest Mills CHINA (Shanghai - Monthly) HMS (80:20), Ex Mills, Including Vat JAPAN Tokyo Steel Purchase Price, Ex Works HMS 2, FOB EUROPE UK HMS (80:20), Ex Mills Domestic UK Plate & Structures, Ex Mills Domestic

Per US$ 30-Mar 28-Feb

380 360 Turkey Import CFR

340

363 360

-9

344 364

-10 -9.61

Indian Steel Prices Snapshot Product/Grade / Size 30-Mar 28-Feb Basic Prices Ex Raipur Rs/MT Rs/MT Scrap (HMS 80:20) 24,150 24,450 Sponge Iron* 19,800 20,250 Pig Iron (Steel Grade) 24,200 24,400 MS Ingot* (3.5 x 4.5) 28,450 29,100 Billet* (125 x 125) 28,800 29,600 Re-bar* (12 MM) 32,600 33,000 Scrap Bhavnagar Rs/MT Rs/MT 4 ANI (6-8 MM Plate) 23,100 23,000 6 ANI (9-11 MM Plate) 23,900 23,750 8 ANI (12-14 MM Plate) 24,500 24,350 10 ANI (15-18 MM Plate) 25,100 24,750 12 ANI (19-22 MM Plate) 25,400 25,000 1 INCH (25 MM Plate) 25,700 25,300 1-2 KG 23,400 23,400 2-5 KG 23,650 23,600 5-10 KG 24,500 24,300 Basic Prices, ED & Taxes extra * Payment Next Day # Including All

India Import CFR

320

US Export FOB

300

International Market Product/Grade / Size US HMS FOB India HMS CFR CIS Billet FOB Black Sea CIS Rebar FOB Black Sea Turkey Billet FOB Turkey Rebar FOB

$/MT 30-Mar 345 398 525 575 553 610

$/MT 28-Feb 353 403 535 589 545 604

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