China: Ferrous Scrap Exports Ascend 23% in Nov’17

After witnessing fall in ferrous scrap exports in October month, China scrap exports have bounced back in Nov’17 registering an increase of 23% M-o-M.

China – world’s largest scrap producer as well as the consumer has registered hike in its ferrous scrap exports by 23% M-o-M in November’17. According to recently released customs data, the country exported 363,628 MT ferrous scrap in Nov’17 compared to 294,990 MT ferrous scrap exports in Oct’17.

China witnessed consecutive rises in monthly scrap exports in Aug’17 and Sept’17 after which a fall had registered in scrap exports in Oct’17. In Nov’17, the ferrous scrap exports probably have increased back owing to sharp increase in demand and restocking activities by most of the importing countries before winters.

During the first eleven months of CY17, China’s ferrous scrap exports summed up to 2.10 MnT which were skyrocketed compared with the minor ferrous scrap exports during Jan-Nov’16.

Chinese government has recently reduced the export duties on several steel products to nil but clarified further that the export duty for ferrous scrap has been kept unchanged at 40%.

Indonesia continues to remain the largest importer of Chinese scrap –

Indonesia remained the largest destination for Chinese ferrous scrap in Nov’17 again and imported 143,520 MT comprising 39% share in total Chinese ferrous scrap exports in Nov’17.

Followed by other South-East Asian countries like Vietnam (68,734 MT), Malaysia(50,963 MT), Thailand (30,807 MT), India (21,473 MT),South Korea (14,859 MT) and Taiwan (10,126 MT) occupying shares of 19%, 14%, 8%, 6%, 4% and 3% of total ferrous scrap exports respectively.

On the other hand, China imported 0.18 MnT ferrous scrap in Nov’17 which is marginally up by 6% M-o-M against 0.17 MnT ferrous scrap imports in Oct’17.During Jan-Nov’17, Chinese ferrous scrap imports increased by 12 % Y-o-Y to 2.10 MnT against 1.88 MnT in the same time frame of last year. Thus, China turned out to be the net exporter of ferrous scrap again in Nov’17. Remarkably, China is exporting higher scrap than imports since last six months in this fiscal.