Japan witnessed second consecutive fall in its monthly ferrous scrap exports in Oct’17; South Korea’s share remained more than half (55%) in Japan’s ferrous scrap exports in Oct’17
Japan – third largest exporter of ferrous scrap after EU-28 and US has witnessed marginal decline in its ferrous scrap exports by 7% M-o-M in Oct’17. As per recent customs data, Japan has exported 0.63 MnT ferrous scrap in Oct’17 compared to 0.68 MnT in Sept’17.
On the yearly basis, ferrous scrap exports from Japan witnessed growth of 21% Y-o-Y in Oct’17 as the country had exported 0.52 MnT ferrous scrap in Oct’16.
Japan exported 6.64 MnT ferrous scrap during the period of first ten months of CY17. A drop of 7% Y-o-Y has noted in its exports against 7.11 MnT ferrous scrap exports in the same period in CY16.
Japan mainly exports special grade H2 scrap along with other preferred grades as SD, HS, Shindachi and H1.
South Korea remained preferred destination for Japan’s ferrous scrap exports –
South Korea continued to remain preferred destination for the Japanese ferrous scrap exports with 3.26 MnT imports occupying 49% share of total exports from Japan during Jan-Oct’17, followed by China (1.43 MnT) and Vietnam (1.24 MnT) and Taiwan (0.34 MnT) respectively.
South Korea imported 0.35 MnT ferrous scrap occupying more than half share (55%) in Japan’s ferrous scrap exports in Oct’17.While China and Vietnam both imported 0.14 MnT and 0.12 MnT ferrous scrap in Oct’17 respectively.
South Korea registered rise by 16% while Taiwan nearly halved its ferrous scrap imports from Japan during Jan-Oct’17 against same time frame in CY16.
Japan witnessed increased domestic scrap demand and purchases in Oct’17-
Japan’s domestic scrap demand remained strong in Oct’17 over a peak construction season in the country. Japanese traders justify the strong demand for scrap in the domestic market by incremental billet exports from Japan. Following this, the Japanese companies had increased their domestic scrap purchases resulting in declining scrap exports since last two months. Japanese H2 scrap bids remained at JPY 31,000-32,000/MT (USD 275-285), FoB Japan in Oct’17 against JPY 32,000-33,000/MT in Sept’17.
Country-wise Japan ferrous scrap exports –
| Country | Oct’17 | Sept’17 | M-o-M % Change | Oct’16 | Y-o-Y % Change | Jan-Oct’17 | Jan-Oct’16 | % Change |
| South Korea | 0.35 | 0.37 | -5.41% | 0.25 | +40.00% | 3.26 | 2.80 | +16.43% |
| China | 0.14 | 0.13 | +7.69% | 0.15 | -6.67% | 1.43 | 1.48 | -3.38% |
| Vietnam | 0.12 | 0.13 | -7.69% | 0.11 | +9.09% | 1.24 | 1.73 | -28.32% |
| Taiwan | 0 | 0.01 | -100.00% | 0 | _ | 0.34 | 0.7 | -51.43% |
| Bangladesh | _ | 0.02 | _ | _ | _ | 0.16 | 0.16 | 0.00% |
| Others | 0.02 | 0.02 | 0.00% | 0.01 | +100.00% | 0.21 | 0.23 | -8.70% |
| Total | 0.63 | 0.68 | -7.35% | 0.52 | +21.15% | 6.64 | 7.11 | -6.61% |
Quantity In MnT,
Source: SteelMint Stats
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