South Korea: Ferrous Scrap Imports Descent 12% in November

Scrap imports from Russia dropped 41% while that from Japan 8% M-o-M in Nov’18.

South Korea – world’s 2nd largest ferrous scrap importer after Turkey has witnessed a decline in scrap imports by 12% M-o-M in Nov’18. As per recently released customs data, South Korea imported 456,217 MT ferrous scrap in Nov’18 as against 518,396 MT in Oct’18. On yearly basis, imports decreased 11% Y-o-Y in Nov’18 against 514,825 MT ferrous scrap in Nov’17.

Japan remained the largest ferrous scrap supplier – Japan exported 281,016 MT in Nov’18, down 8% M-o-M as against 304,476 MT in Oct’18 occupying the highest 62% share in total scrap imports. Japanese domestic scrap prices declined sharply resulting in limited exports in Nov’18.

On arrival of bulk cargoes that were booked by major steelmakers in earlier months, US scrap exports have observed a marginal increase in Nov’18. US exported 93,430 MT, up 7% M-o-M as against 87,546 MT in Oct’18, it remained the second largest supplier occupying 20% share.

Russia stepped down at third largest supplier position registering almost 41% M-o-M fall in Nov’18. It supplied 60,503 MT ferrous scrap in Nov’18 as against 102,647 MT recorded in Oct’18. While other major exporters like United Kingdom and New Zealand continued witnessing nil scrap exports to South Korea since last three months.

As per Steeldaily’s reports, average import price for Japanese scrap fell sharply by around USD 50-60/MT in Nov’18 and that by USD 10-15/MT for US and Russian scrap. Average prices for Japanese H2, US mix grade and Russia A3 scrap imported to South Korea stood at USD 327/MT, USD 352/MT and USD 342/MT respectively.

Outlook – South Korean scrap imports remained slow amid high inventories available in hand and more competitive domestic scrap prices. Hyundai Steel which accounts the highest share of Japanese scrap imports resumed bidding for Japanese H2 after almost four months along with stable high-grade purchases.

South Korean scrap imports climb 6% during Jan-Nov’18 – South Korea imported 5,611,426 MT ferrous scrap, up by 6% Y-o-Y against 5,305,767 MT ferrous scrap recorded during the same period last year. Major suppliers like US and UK observed almost 73% and 150% Y-o-Y rise in exports to South Korea during Jan-Nov’18 as against last year.

According to World Steel Association, the country produced 66.29 MnT crude steel during Jan-Nov’18, up 2% Y-o-Y as against 64.96 MnT last year. South Korea produced 5.92 MnT crude steel in Nov’18, down 4% M-o-M.

Country wise South Korea ferrous scrap imports –

Quantity in MnT,
Source: SteelMint Stats