South Korea, a major ferrous scrap buyer in the South East Asia region, imported 301,742 t of the material in January 2023 as against 293,976 t in December 2022. Imports registered a nominal rise of 3% m-o-m, as per Customs data maintained with SteelMint.
In contrast, imports decreased by 3% y-o-y compared to 312,070 t in January 2022. Also, South Korea’s steel billets imports were at 85,394 t in January 2023, a drop of 50% y-o-y as compared to January 2022. Japan was the largest billets and scrap exporter with 81,936 t and 265,811 t in January 2023, y-o-y a 40% and 32% increase as compared to the Corresponding Period Last Year (CPLY).
South Korean mills procured raw materials as well as semi-finished products to maintain crude steel production. However, mills have reduced exports to fulfill their domestic steel demand.
Country-wise scrap imports
- Imports from Japan rise by 19%: Japan, one of the prominent scrap suppliers to South Korea supplied 265,811 t of raw material in January 2023, as compared to 223,520 t in December. FOB prices from Japan are increasing m-o-m with the increasing demand for H2 scrap.
- Imports from the US fall by 24%: South Korea’s scrap import volumes from the US fell by 24% to 16,127 t in January as against 21,278 t in December, 2022.
- Imports from Russia increase by 3%: Total scrap imported from Russia rose by 3% m-o-m at 8,179 t in January as against 7,963 t in December.
Outlook
In the near future, it is expected that the price of Japanese ferrous scrap would rise. This may impact local steelmakers’ purchasing decisions. So, it is anticipated that South Korean steel makers might purchase scrap from local suppliers.
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