Japan: Ferrous scrap exports up 11% in Oct’21 on rising South Korea shipments

Japan, one of the leading ferrous scrap exporting countries, recorded 0.49 million tonnes (mn t) of overseas sales of the material in Oct’21 as against 0.44 mn t in Sept’21, rising 11% m-o-m, as per customs data maintained with SteelMint.

The m-o-m rise in exports in Oct’21 from the country was due to easing of lockdown in major importing countries like Vietnam and Bangladesh that resulted in increased import volumes. Also, imports by South Korean mills witnessed an increase.

On a y-o-y basis, scrap exports registered a fall of 45% as compared to 0.89 mn t in Oct’20.

Market highlights

• South Korea top importer: Japan exported 0.23 mn t of ferrous scrap to South Korea in Oct’21 as against 0.22 in Sept’21, marking a comeback by 5% m-o-m.
  Imports from the Korean mills rose slightly on rising demand for high-grade Japanese scrap.
• Exports to Vietnam rise: Ferrous scrap exports to Vietnam rose m-o-m in Oct’21. The country remained the second largest importer of ferrous scrap from Japan with 0.13 mn t, representing a jump of 18% on the month as against 0.11 mn t in Sept’21.

Imports recovered on growing buying interest in seaborne scrap as overseas demand for billets and finished steel kept Vietnamese buyers active in the market post-lifting of lockdown restrictions.

• Exports to Bangladesh rise sharply: Bangladesh’s ferrous scrap import volumes from Japan more than doubled by 206% to 23,050 tonnes (t) in Oct’21 as against 7,522 t in Sept’21.

The improved demand for finished steel and restocking immediately after the resumption of market activities after a one-month lockdown led to the hike in imports. The Bangladeshi buyers were aggressive owing to the upcoming construction season.

• Scrap export prices show uptrend: SteelMint’s price assessment for Japanese H2 scrap exports rose to JPY 46,667/t FOB in Sept’21 after hitting JPY 45,500/t FOB in Aug’21.

Outlook
Demand for Japanese imported scrap is expected to improve steadily in the remaining two months of CY’21 on renewed buying interest from key importing markets.