South Korea: Ferrous Scrap Imports Stable in May

South Korea – world’s 2nd largest ferrous scrap importer after Turkey has witnessed a stability in its scrap imports in May’18. As per recently released customs data, the country has imported 486,497 MT ferrous scrap in May’18 which remained nearly stable as against 482,227 MT ferrous scrap imports recorded in May’17.

On monthly premises, ferrous scrap imports to South Korea dropped by 1.3% M-o-M in May’18 as against 493,047 MT imports recorded in Apr’18.

The average scrap export prices from largest supplier Japan moved down sharply in Apr’18 and remained at lower side till the first half of May’18, however, imports remained bounded on sharply declined demand and production cuts for rebar in South Korea. Japan exported 347,501 MT ferrous scrap in May’18 occupying 71% share of total scrap imports to South Korea and it has witnessed marginal fall in scrap exports by 5% M-o-M as against 367,463 MT exports in Apr’18.

Russia remained second highest exporter of ferrous scrap and supplied 112,347 MT in May’18 which has seen a surge of 22% M-o-M against 92,050 MT exports in Apr’18. Followed by other prominent exporters like United States (7,913 MT, -7% M-o-M) and Philippines (2,072 MT, -33% M-o-M). While other major exporters like United Kingdom and New Zealand witnessed sharply declined exports to South Korea in May’18.

South Korean scrap imports up marginally during Jan-May’18 – During first five months of CY18, South Korea imported 2.50 MnT ferrous scrap which has inched up marginally by 3% Y-o-Y as against 2.43 MnT ferrous scrap imports recorded in Jan-May’2017.

According to World Steel Association, South Korea also witnessed an increase of 4% Y-o-Y it’s in crude steel production in Jan-Apr’18. The country produced 23.70 MnT crude steel during first four months of CY18 as against 22.82 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. While demand for high-grade Japanese scrap remained strong on increasing demand for special steel manufacturing.

Japan remained largest ferrous scrap supplier to South Korea – Japan supplied highest 1.80 MnT ferrous scrap occupying 72% share in total imports and also witnessed 13% Y-o-Y growth in its scrap exports during Jan-May’18 to South Korea. Followed by other major exporters like Russia (0.37 MnT, stable Y-o-Y), United States (0.15 MnT, -40% Y-o-Y) and United Kingdom (0.04 MnT, stable Y-o-Y) respectively to South Korea in Jan-May’18.

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