South Korea: Ferrous Scrap Imports Fall Marginally in Jan’18

After registering highest ferrous scrap imports since last three years in 2017, South Korean scrap imports fell marginally in Jan’18 amid high global scrap prices.

South Korea- world’s 2nd largest importer of ferrous scrap after Turkey has witnessed marginal fall of 5% M-o-M in ferrous scrap imports in Jan’18. As per recently released customs data, South Korea imported 0.56 MnT ferrous scrap in Jan’18 as against 0.59 MnT in Dec’17.

Notably, ferrous scrap imports to South Korea in Dec’17 had hit 39 months’ high as imports were recorded highest at 0.59 MnT since September 2014.

On yearly premises, South Korean ferrous scrap imports increased 19% Y-o-Y in Jan’18 as against 0.47 MnT ferrous scrap imports in Jan’17.

South Korea’s ferrous scrap imports increased 5% in 2017 – South Korea imported 5.90 MnT ferrous scrap over the span of CY17, which was highest since last three years and up by 5% Y-o-Y as against 5.64 MnT imports in 2016. Rising scrap demand by major steelmakers in South Korea with rising crude steel production resulted in rising in scrap imports in 2017. According to the data released by World Steel Association, crude steel production in South Korea stood at 71.08 MnT in 2017 compared to 68.57 MnT during CY16.

Japan remained largest ferrous scrap supplier to South Korea in Jan’18 –

Japan remained largest ferrous scrap exporter to South Korea again in Jan’18. Japan supplied 0.39 MnT (-13% M-o-M) ferrous scrap occupying highest 61% share in total imports to South Korea.

In Jan’18, United States emerged as a second highest exporter and supplied 0.09 MnT (80% M-o-M) ferrous scrap to South Korea. Followed by Russia (0.06 MnT, -50% M-o-M) and United Kingdom (0.04 MnT, +300% M-o-M) respectively.

South Korea witnessed fall in scrap imports in Jan’18 over falling scrap exports from Japan as the Japanese scrap export prices remained on higher side throughout the December month amid strong domestic demand. While other major scrap exporters like New Zealand, China, Philippines and Singapore registered nil exports in Jan’18 amid tightened supply during winters.

In 2017, Japan exported highest 3.90 MnT ferrous scrap occupying 66% share in total ferrous scrap imports to South Korea. Followed by Russia and United States occupied 17% and 8% shares respectively. While China supplied 0.10 MnT to South Korea in 2017 as against minor scrap exports in 2016.

Country wise South Korea ferrous scrap imports –

Quantity In MnT,
Source: SteelMint Stats