Japan, a leading importer of ferrous scrap, recorded 0.29 million tonnes (mnt) of export sales in Jan’22 as against 0.47 mnt in Dec’21, down 38% m-o-m, as per customs data.
The month-on-month fall in exports in Jan was largely due to Japanese suppliers showing little interest in lowering offers further amidst tight domestic scrap generation on lower automobile production and strong domestic demand.
South Korea was the largest importer with 0.21 mnt, followed by Vietnam and Malaysia with 0.03 mn t and 0.01 mn t, respectively.
The country’s scrap exports on a yearly basis declined 40% as against 0.48 mnt in Jan’21.
Market highlights
- Exports to South Korea fall: Japan exported 0.21 mnt of ferrous scrap to South Korea in Jan’22 as against 0.24 mnt in Dec, a decrease of 13% m-o-m. Imports by the Korean mills dipped on decreasing demand for high-grade Japanese scrap, which command high prices. The mills preferred domestic scrap over imports owing to local scrap being available at a lower price and prompt delivery of material.
- Dip in exports to Vietnam: Ferrous scrap exports to Vietnam plunged on month in Jan’22. The country was the second-largest importer of ferrous scrap from Japan with 0.03 mnt, a fall of 79% m-o-m as against 0.14 mnt in Dec. The discrepancy in bids and offers slowed down trade. Due to negative sentiments prevailing in Vietnam’s domestic market, buyers and steelmakers are waiting for a clearer market picture to emerge.
- Exports to India plunge: India’s ferrous scrap import volumes from Japan were 127 t in Jan after exports of 576 t in Dec. High freight charges and elevated offers from Japan compelled buyers to go for supplies from the UAE and the USA/EU and other destinations. Buyers showed lack of interest and were waiting for prices to edge down.
- Exports to China rebound: China’s ferrous scrap import volumes from Japan stood at 11,145 t in Jan after exports of 8,840 t in Dec. Volumes witnessed an uptrend owing to swelling demand for HRS material in the country.
Leave a Reply