Japan: Ferrous Scrap Exports Rise 25% M-o-M in April

Japan world’s third largest exporter of ferrous scrap after EU-28 and US, has witnessed a significant rise in its scrap export volumes in April month. After hitting seventeen months low in Mar’18, scrap exports turned up in Apr’18 on declined prices during early Apr’18. As per recent customs data, Japan exported 661,779 MT ferrous scrap in Apr’18 witnessing a rise of 25% M-o-M as against 530,234 MT in its scrap exports in Mar’18.

On the other hand, Japan’s ferrous scrap exports noted a marginal plunge of 3% Y-o-Y as compared with 642,326 MT ferrous scrap exports recorded in Apr’17 last year.

Japanese scrap export prices fell sharply in early Apr’18 – Amid decreasing global scrap prices Japanese scrap prices turned downward in early Apr’18 after reaching the short-term top in Mar’18. Average H2 scrap export prices kept falling in the first half of Apr’18 from JPY 37,000-38,000/MT, FoB in mid-Mar ’18 to JPY 33,000-34,000/MT in mid-April which remained mostly firm to lower side for rest of the month. Low scrap exports prices could have resulted in a sharp speed-up in export activities from Japan in Apr’18. However, Japanese scrap prices rebounded back by JPY 3000-3500/MT again in May’18.

Japan mainly exports special grade H2 scrap along with other preferred grades as SD, HS, Shindachi and H1. Major scrap export activities remain concentrated on ports like Tokyo, Osaka, Nagoya and Yokohama in Japan.

South Korea remained largest importer of Japanese scrap in Apr’18 – South Korean imports surged 47% M-o-M on improved demand on low scrap inventories available with steelmakers in Apr’18. South Korea imported 442,322 MT ferrous scrap in Apr’18 as against 299,224 MT in Mar’18. China and Vietnam imported 97,747 MT (+46% M-o-M) and 55,466 MT (-49% M-o-M) from Japan followed by other major importers like Taiwan (40,074 MT) and Bangladesh (21,511 MT).

Japanese scrap exports fell 10% Y-o-Y during Jan-Apr’18 – Japan exported 2.42 MnT ferrous scrap during first four months’ period in CY18 which have declined by 10% Y-o-Y as against 2.69 MnT exports recorded in Jan-Apr’17. Falling demand from major importers like China, Taiwan and Asian markets, along with strong domestic demand on Olympics-2020 constructions have resulted in lowering scrap exports from Japan in Jan-Apr’18.

During Jan-Apr’18, Japan exported highest 1.51 MnT ferrous scrap to South Korea which is 62% of total exports. Although South Korean scrap imports showed 13% Y-o-Y growth as against 1.34 MnT during same period CY17, its demand weakened sharply in end April and May on a sharp decline in rebar production. Second largest buyer Vietnam imported 0.43 MnT occupying 18% share. Followed by other importers like China (0.32 MnT), Taiwan (0.10 MnT) and Thailand (0.06 MnT).

During the first four months of 2018, Japan’s crude steel production improved marginally as compared to crude steel production in the same period last year. As per statistics released by World Steel Association, Japan’s crude steel production recorded at 35.13 MnT during Jan-Apr’2018 as against 34.98 MnT during Jan-Apr’17.

Country-wise Japan ferrous scrap exports –

Quantity in MnT,
Source: SteelMint Stats