Thursday, May 30, 2013

Scrap tops Vizag imports list

By SNV Sudhir

Visakhapatnam, May 29, 2013: It is not hybrid flowers or furniture from China, but iron ferrous scrap that is much sought after imported material by locals after chemicals and refractories. It is one among the three top imports at the Visakhapatnam container terminal.
The scrap is said to be being imported from African and West Asian countries where it is available in plenty, and also from USA by local small scale steel mills and other small scale units to recycle and use in steel manufacturing. There are around 30 steel mills in and around Vizag and they import, on an average, 1,000 containers, weighing 20 to 30 tonnes in a month. Data compiled by the Metal Recycling Association of India (MRAI) also forecasts India’s ferrous scrap import to set a record at 7.5 million tonnes in 2012-13, almost 25 per cent more over the previous year, which is also an increase by 50 per cent from 2010-11.
With the non availability of iron ore in the open market, most steel mills and sponge iron producers have started depending on imported scrap. This dependence has increased in recent times as they feel it cheaper than buying ore. But major steel producers depend on iron ore with captive material linkage.
“Though iron ore can’t be replaced totally with scrap in steel-making, some secondary steel makers use it. The infrastructure sector is incomplete without steel and iron,” said Steel Exchange India Ltd, director K V Bhaskar.

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