INDIA'S SCRAP IMPORTS REBOUNDED IN MAY, AND THE UAE PREFERRED

Increase in Scrap Imports:  India's scrap imports rose by 15% in May, reaching 0.61 million tonnes, after four months of sequential decline.

Restocking Anticipation:  The increase was due to restocking by Indian buyers between mid-April and early May, anticipating higher steel demand following the general election which concluded on June 4.

Source of Imports:  India typically imports most ferrous scrap from the US, UK, and Europe. However, in May, the highest volume of imports came from the United Arab Emirates.

UAE Export Duty:  The UAE imposed a $109/tonne export duty, yet it was still the largest supplier to India in May.

 Preference for UAE Imports:  India preferred imports from the UAE over the US and Europe due to shorter voyage times and a significant spike in freight rates from distant countries.

Challenges from US Tariffs:  Following the US tariff announcement on China in early May, Chinese manufacturers expedited shipments to the US, adding to port congestion and high freight rates, making sourcing from Far Eastern countries difficult.