South Korea: Ferrous Scrap Imports Up Marginally in April

South Korea – world’s 2nd largest ferrous scrap importer after Turkey has witnessed a marginal increase in its scrap imports in Apr’18. As per recently released customs data, the country has imported 493,047 MT ferrous scrap in Apr’18 registering almost 5.8% rise as against 466,173 MT ferrous scrap imports recorded in Mar’18.

On yearly premises, ferrous scrap imports to South Korea surged 22% Y-o-Y in Apr’18 as against 405,507 MT ferrous scrap imports recorded in Apr’17.

In Apr’18, the scrap export prices from largest supplier Japan moved down sharply despite which imports remained bounded on sharply declined demand for finish steel especially rebar in South Korea. Japan exported 367,463 MT ferrous scrap in Apr’18 occupying 75% share of total scrap imports to South Korea and it has witnessed marginal fall in scrap exports by 2.4% M-o-M as against 376,708 MT exports in Mar’18.

Russia remained second highest exporter of ferrous scrap and supplied 92,050 MT in Apr’18 which has seen a significant surge by 131% M-o-M against 39,785 MT exports in May’18. Followed by other prominent exporters like United States (8,554 MT, -4% M-o-M) and Hong Kong (3,248 MT). While other major exporters like United Kingdom and New witnessed sharply declined exports to South Korea in Apr’18.

South Korean scrap imports nearly stable during Jan-Apr’18 – During first four months of CY18, South Korea imported 2.01 MnT ferrous scrap which has inched up marginally by 3% Y-o-Y as against 1.95 MnT ferrous scrap imports recorded in Jan-Apr’2017.

According to World Steel Association, South Korea also witnessed marginal increase by 3% Y-o-Y its in crude steel production in Q1 2018. The country produced 17.80 MnT crude steel during Q1’2018 as against 17.32 MnT crude steel production recorded in the same period last year. In CY18, South Korea is observing increasing local consumption of scrap in its crude steel production. According to Korea Iron and Steel Association, country’s overall scrap consumption stood around 47 MnT, up 10% Y-o-Y in 2017.

Japan remained largest ferrous scrap supplier to South Korea – Japan supplied highest 1.45 MnT ferrous scrap occupying 72% share in total imports, It has also witnessed 13% Y-o-Y growth in its scrap exports during Jan-Apr’18 to South Korea. Followed by other major exporters like Russia (0.26 MnT, -7% Y-o-Y), United States (0.15 MnT, -29% Y-o-Y) and United Kingdom (0.04 MnT, stable Y-o-Y) respectively to South Korea in Jan-Apr period of CY18.

South Korea’s share in Kanto increased significantly in 2017 – In CY 2017, total 225,000 MT ferrous scrap exported from Japan through its monthly scrap tender ‘Kanto Tetsugen’ out of which Vietnam purchased highest 139,000 MT followed by South Korea (81,000 MT) and Taiwan (5,000 MT) respectively. In CY16, South Korea accounted for only 10,000 MT (4% share) in Kanto Tender which increased to 36% in CY17.

Country wise South Korea ferrous scrap imports –

Quantity In MnT,
Source: SteelMint Research