Thailand: Ferrous Scrap Imports Hit 9 Month High in May’18

World’s largest supplier – USA increased its exports to Thailand by about three folds on M-o-M basis in May. Growing scrap demand from EAF manufacturers and fall in semi-finish steel imports could have led to a significant surge in scrap imports in CY18

Thailand-one of the emerging Southeast Asian market in terms of the steel industry has witnessed a sharp rise in its ferrous scrap imports in May’18. As per recently released customs data, Thailand imported 185,546 MT ferrous scrap in May’18 which has increased by 79% M-o-M as against 103,841 MT imports recorded in Apr’18. Notably, Thailand hit last 9 months’ highest scrap imports in May as earlier to this, Thailand imported 220,383 MT ferrous scrap in Aug’17 which also stood as the highest imports during CY17.

On yearly premises, ferrous scrap imports multiplied by almost three folds witnessing 224% Y-o-Y surge in May’18 as against 57,204 MT ferrous scrap imports in May’17.

In May’18, Thailand’s semi-finish steel (Billet & Pig Iron) imports fell 31% M-o-M to 159,969 MT as against 231,038 MT in Apr’18.

United States remained the largest supplier of ferrous scrap to Thailand – In May’18, United States supplied highest 100,762 MT ferrous scrap to Thailand occupying 54% share. United States scrap exports increased almost three folds on monthly basis in May’18 as it exported 32,792 MT scrap in Apr’18 due to slow down in activities over the imposition of USA import tariffs.

Japan which was the second largest supplier in April witnessed a sharp fall by 96% M-o-M as it supplied minor volumes in May’18 to Thailand. New Zealand stood as the second largest exporter supplying 27,374 MT scrap, which has increased significantly on monthly basis.

Myanmar remained the third largest supplier to Thailand and witnessed 99% M-o-M rise supplying 11,206 MT scrap in May’18. Followed by Trinidad & Tobago (6,132 MT) and Australia (5,457 MT) in May’18. Major exporters like China, South Africa and Philippines witnessed nil exports again.

Thailand’s ferrous scrap imports increase 47% Y-o-Y during Jan-May’18 – Thailand imported 690,766 MT ferrous scrap during Jan-May’18, up 47% Y-o-Y as against 470,053 MT imports during the period last year. United States remained largest scrap exporter as it occupied highest 29% share of total scrap imports to Thailand followed by other major exporters like Myanmar (15%), Australia (8%), Trinidad & Tobago (5%), South Africa (4%) and New Zealand (4%) respectively.

Crude steel production increased by 5% Y-o-Y during Jan-May’18- Amid rising crude steel production in the country, Thailand witnessed five years’ highest ferrous scrap imports last year which stood at 1.49 MnT as against 0.90 MnT in CY16. According to WSA, during first five months of CY18 Thailand has produced 1.91 MnT crude steel as against 1.81 MnT in Jan-May last year.

Thailand steel industry is majorly dominated by rolling mills and most of them make use of electric arc furnace route thus making the country a major scrap consumer. Few of the major steel include G Steel, Tata Steel Thailand, Sahaviriya Steel Industries PLC etc.

Country-wise Thailand ferrous scrap imports –

Quantity in MT,
Source: SteelMint Stats