Japan, a major ferrous scrap exporter worldwide, witnessed a rise of 16% in scrap exports at 477,186 tonnes (t) in August 2022 as against 411,651 t in July, as per data maintained with SteelMint. Supply increased to countries like Vietnam, China, Philippines, Indonesia, and South Korea, which directly indicates the reason behind the increment in export volumes by Japan.
However, on a y-o-y (year-on-year) basis, exports dipped by 8% from 516,249 t in August 2021.
Country-wise break up
- Exports to South Korea rise: Japan exported 189,841 t of ferrous scrap to South Korea in August as against 177,756 t in July, a recovery of 7% m-o-m. The nation continued to be in the top position as the largest buyer of Japanese scrap.
- Exports to Vietnam increase: Ferrous scrap exports to Vietnam increased by 31% to 114,102 t in August compared to 87,033 t in the previous month. Vietnam scrap bookings remain high as a result of demand for imported Japanese scrap at viable prices.
- Exports to Taiwan slightly up: Japan’s exports to Taiwan inched up 6% to 60,020 t in August as against 56,819 t in July. Imports by Taiwan were down by 30% on a y-o-y basis as against 85,281 t in August 2021.
Japanese H2 scrap prices rise: The monthly average price in July stood at JPY 44,200/t FOB.
Outlook
Market participants expect that Japanese scrap prices are likely to rise a bit in the near future owing to improving demand in the domestic and overseas markets on demand for restocking of material before winter.
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