Japan, a major ferrous scrap exporter worldwide, reported a 13% fall in scrap exports at 411,651 tonnes (t) in July 2022 as against 472,016 t in June, as per data maintained with SteelMint. Healthy domestic demand and higher prices kept Japanese scrap exports lower along with bid-offer discrepancy in overseas markets.
However, on a y-o-y (year-on-year) basis, exports dipped by 28% from 573,473 t in July 2021.
Country-wise break up
- Exports to South Korea fall: Japan exported 177,746 t of ferrous scrap to South Korea in July as against 229,111 t in June, a decline of 22% m-o-m. The nation retained its position as the largest buyer of Japanese scrap despite lower imports.
- Exports to Vietnam decrease: Ferrous scrap exports to Vietnam fell by 10% to 87,033 t in July compared to 99,462 t in the previous month. The cost-effectiveness of domestic scrap in Vietnam kept scrap bookings subdued which reduced the demand for imported Japanese scrap at high prices.
- Exports to Taiwan rise: Japan’s exports to Taiwan rose 12% to 56,819 t in July as against 50,666 t in June. Imports to Taiwan doubled on a y-o-y basis as against 18,525 t in July 2021.
Japanese H2 scrap prices rise: The monthly average price in June stood at JPY 52,125/t FOB.
Outlook: As demand from both domestic and foreign buyers remain absent, Japanese scrap export prices are expected to fall further. However, some mills might show interest since they might be low on stocks.
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