China’s recycled steel raw materials or ferrous scrap imports stood at 22,714 tonnes (t) in May 2022 compared to 20,386 t in the same period last month, witnessing an 11% hike on monthly basis.
Stronger steel prices in April encouraged Chinese mills to procure more imported ferrous scrap in order to maintain the normal production level.
However, ferrous scrap imports plummeted 80% y-o-y in May 2022 compared to 111,432 t in the corresponding month last year, as per SteelMint records.
Country-wise imports
- Imports from Japan up: Chinese mills actively imported 17,161 t of scrap from Japan in May, a rise of 6% as against 16,162 t seen in April.
However, imports fell by 78% against 79,327 t in the same month last year.
- Imports from South Korea up m-o-m: South Korean mills exported a total of 3,002 t of ferrous scrap to China in May 2022, a hike of 7% as compared to 2,797 t in the previous month.
On a yearly basis, however, imports plunged by 89% from 26,877 t in May 2021.
Outlook
The softening of the finished steel market may impose pressure on imported and domestic scrap prices in China.
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