South Korea : Ferrous Scrap Imports from Japan Fall 14% in July

South Korea – world’s 2nd largest ferrous scrap importer after Turkey has witnessed fall in scrap imports by 20% M-o-M in Jul’18. After registering 45 month high imports in Jun’18, South Korean imports turned down amid high global scrap prices, slowdown in demand on ample inventories, considerable contracts in hand and increased consumption of domestic scrap.

As per recently released customs data, South Korea imported 491,319 MT ferrous scrap in July as against 610,037 MT imports in Jun’18. On yearly basis, imports rose 22% Y-o-Y in Jul’18 against 403,847 MT ferrous scrap in Jul’17.

In Jul’18, Japan exported 304,046 MT ferrous scrap occupying 62% share of total scrap imports to South Korea. Export prices from largest supplier Japan moved up sharply and the demand for Japanese scrap from South Korean steel makers remained weak. Japan witnessed fall of 14% M-o-M in scrap exports to South Korea as against 345,156 MT exports in Jun’18.

United States stepped up as the second largest supplier witnessing 9% M-o-M rise to 89,436 MT in Jul’18. Russia remained third largest exporter and supplied 80,963 MT (down 28% M-o-M) ferrous scrap to South Korea. While other major exporters like United Kingdom, Philippines and New Zealand witnessed sharply declined exports to South Korea in Jul’18.

South Korean scrap imports increase 9% during Jan-Jul’18 – During first seven months of CY18, South Korea imported 3.60 MnT ferrous scrap, up by 9% Y-o-Y as against 3.31 MnT ferrous scrap imports recorded during the same period last year.

According to World Steel Association, South Korea witnessed an increase of 4% Y-o-Y it’s in crude steel production in Jan-Jun’18. The country produced 36.07 MnT crude steel during first half of CY18 as against 34.80 MnT crude steel production recorded in the same period last year.

In CY18, South Korea is observing significant increase in 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 2.45 MnT ferrous scrap occupying 68% share in total imports and witnessed 11% Y-o-Y growth in its scrap exports during Jan-Jul’18 to South Korea. Followed by other major exporters like Russia (0.57 MnT, up 2% Y-o-Y), United States (0.33 MnT, 22% Y-o-Y) and United Kingdom (0.10 MnT, +150% Y-o-Y) during Jan-Jul’18.

Country wise South Korea ferrous scrap imports –

Quantity In MnT,
Source: SteelMint Stats