China: Ferrous scrap imports rebound in Feb’22 on increased buying from Japan

China recorded a m-o-m jump of 44% in imports of recycled steel raw materials, or ferrous scrap, in Feb’22.

The world’s leading steel producer imported 14,421 tonnes (t) of ferrous scrap in Feb’22 as against 9,995 t in Jan’22, as per customs data maintained with SteelMint.

Japan retained its position as the leading ferrous scrap exporter to China with 11,663 t, followed by South Korea at 1782 t in Feb’22, as per customs data collated by SteelMint.

China imported a total of 24,416 tonnes of ferrous scrap in the first two months of 2022, an increase of 244% from the prior year, according to the latest SteelMint data after China eased out its restrictions on imports in CY’21.

“The country has started importing material to better serve the country’s new economic development model. Beijing, for the rural areas, will further improve the commercial and logistics networks to facilitate the consumption among the local citizens, while in the urban areas, the focus will be on upgrading for greater convenience and higher quality”.

Country-wise breakup

• Imports from Japan spike: Chinese mills imported 11,663 t of scrap from Japan in Feb’22, a humongous rise of 242% as against 3,412 t in the Jan’22 period.

Chinese mills seemed to be extremely interested in booking Japanese ferrous scrap on improved buying interest for high-grade material such as heavy scrap (HS) grade, HRS 101 and busheling, and increased profit margins.

• Imports from South Korea plunge: South Korean mills exported a total of 1,782 t of ferrous scrap to China in Feb’22, a plunge of 53% as compared to 3,753 t in Jan’22.

Outlook
Chinese steel mills appear to be more interested in procuring scrap, as they are actively buying material at favourable prices, which may keep scrap import volumes on the higher side.

China’s domestic consumption is expected to continue with the on-year growth on the back of China’s efficient pandemic control.