Japan: Ferrous Scrap Exports Fall Marginally in May

Japan world’s third largest exporter of ferrous scrap after EU-28 and US, has witnessed a marginal fall of 6% M-o-M in its scrap export volumes in May’18. As per recent customs data, Japan exported 618,420 MT ferrous scrap in May’18 as against 661,779 MT ferrous scrap exports recorded in Apr’18.On monthly premises, exports to South Korea fell considerably witnessing significant increase in exports to South Asian markets like Vietnam and Taiwan.

After hitting seventeen months low in Mar’18, scrap exports from Japan turned up in Apr’18 but moved down again in May month amid high price expectations from suppliers.

Japan’s ferrous scrap exports increased by 15% Y-o-Y in May’18 as compared with 576,948 MT ferrous scrap exports recorded in May’17.

Japanese domestic scrap prices increased sharply in May – Average H2 scrap prices kept rising with five price hikes observed at Utsunomiya works by Tokyo Steel  in May’18. Japanese domestic scrap prices moved up by JPY 2000-3000/MT in May’18. On the other hand, South Korean Steel mills kept their bidding at lower side resisting the price hike from Japanese suppliers. High scrap exports offers and weakened demand from major importer could have resulted fall in scrap exports in Japan.

South Korea remained largest importer of Japanese scrap in May’18 – South Korean imports decreased 34% M-o-M on weak demand on considerable scrap inventories and contracts available with steelmakers in May’18. South Korea imported 290,953 MT ferrous scrap in May’18 as against 442,322 MT in Apr’18. Vietnam witnessed sharp growth of 147% M-o-M which imported 111,572 MT in May’18 from Japan followed by other major importers like China (111,572 MT, +14% M-o-M), Taiwan (40,074 MT, +59% M-o-M) and Bangladesh (8,023 MT, -63% M-o-M).

Japanese scrap exports fell 7% Y-o-Y during Jan-May’18 – Japan exported 3.04 MnT ferrous scrap during first five months’ period in CY18 which have declined by 7% Y-o-Y as against 3.26 MnT exports recorded in Jan-May’17. Falling demand from major importers like China, Taiwan and Asian markets, along with strong domestic demand on Olympics-2020 constructions have been resulting in lowering scrap exports from Japan.

During Jan-May’18, Japan exported highest 1.80 MnT ferrous scrap to South Korea occupying 59% of total exports. Although South Korean scrap imports showed 10% Y-o-Y growth as against 1.64 MnT during same period CY17, its demand weakened considerably on monthly basis due to sharp decline in finish steel demand in South Korea. Second largest buyer Vietnam imported 0.57 MnT occupying 19% share. Followed by other importers like China, Taiwan and Bangladesh occupying 14%, 5% and 1% respectively.

During the first five 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, which has recorded at 44.21 MnT during Jan-May’2018 as against 43.91 MnT during Jan-May’17.

Country-wise Japan ferrous scrap exports –

Quantity in MnT,
Source: SteelMint Stats