Japan – the world’s third largest ferrous scrap exporter registered a significant drop in scrap export in Jan’21. The export volumes stood at 0.48 mn t (down by 34% m-o-m) from 0.73 mn t in Dec’20. Higher Japanese export prices and prevailing new year holidays resulted in decrease in exports in Jan’21.
Kanto Tetsugen monthly ferrous scrap export tender which concluded in Dec’20 was finalised in slots of 6,000 t of scrap each at JPY 38,910/t ($365) and JPY 38,510/t ($360) respectively. Notably, both the cargoes were booked by Vietnamese steel mills and the bid price was almost at a 10-12 year high, sources reported to SteelMint.
- Vietnam continues to remain top buyer with 42% share – Vietnam imported 0.20 mn t with 42% share in Japan’s scrap export in Jan’21. Monthly volumes however dropped by 31% m-o-m. SteelMint’s monthly assessment for Japanese bulk H2 stood at $430/t, CFR Vietnam level during Dec’20 (up by 30%) as against $330/t, CFR levels in Nov’20.
- South Korea’s scrap imports decrease by 44% m-o-m in Jan’21 – Another prominent scrap importer, South Korea, stood at 0.14 mn t in Jan’21 as against 0.25 mn t a month ago. Korean mills had remained less active in booking Japanese scrap in December due to high inventories of domestic scrap. SteelMint assessment for Japanese scrap export stood at JPY 39,320/t FoB Japan in Dec’20 as compared to JPY 29,270/t a month ago.
Other major importers of Japanese scrap were Taiwan and Bangladesh at 0.07 mn t and 0.03 mn t respectively.
Japanese scrap exports hit a 11-year high at 9.1 mn t, registering an upsurge by 23% y-o-y in CY’20. This surge was driven by increased demands from Bangladesh, Vietnam and Taiwan. In Dec’20, exports also rose as Vietnamese scrap buyers were actively restocking scrap cargoes on improved billet demand.
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