China- world’s largest consumer of ferrous scrap has witnessed significant fall of 35% Y-o-Y in scrap imports in H1’18. According to recently released data from customs department, the country imported 856,549 MT ferrous scrap during first half of 2018 as against 1,313,608 MT ferrous scrap imports in H1 2017.
In Jun’18, China imported 80,000 MT ferrous scrap, down 60% M-o-M as against 200,000 MT ferrous scrap imports recorded in May’18. On yearly premises, ferrous scrap imports witnessed fall of 57% Y-o-Y in Jun’18 as against 185,271 MT scrap imports in Jun’17.
Notably, Chinese ferrous scrap imports in Jun’18 hit last 39 Months’ low as earlier to this, lowest ferrous scrap recorded at 61,000 MT in Mar’2015.
China imported nearly 400,000 MT ferrous scrap in Q2-2018, down 12% Q-o-Q as against 456,549 MT imports recorded in Q1-2018. On Y-o-Y basis, the country observed significant fall of 36% in imports as against 623,674 MT ferrous scrap imported in Q2-2017.
Japan stands as the largest exporter of ferrous scrap to China occupying more than half share in total Chinese ferrous scrap imports, followed by United States, Australia, South Korea and China. Imports from United States and Australia multiplied sharply in H1 2018 which had dropped last year amid winter production cuts.
On 19 Apr’18, China’s Ministry of Ecology and Environment (MEE) announced that China will ban imports of an additional 16 types of solid waste from December 2018 and a further 16 types of solid waste from Dec’19 in order to further standardize the management of solid waste imports, and to prevent, control and reduce environmental pollution. However, the Chinese government is now ambitious about a complete ban on metal scrap imports in the country by next 2-3 years and it has already banned 32 types of scrap imports in the country.
Average local scrap prices almost stable in Q2, 2018 – For major eastern provinces in China, Average domestic scrap purchase prices for HMS (6mm-10mm) decreased marginally by RMB 33/MT (USD 5) Q-o-Q in Q2, 2018. The average price is gauged at RMB 2327/MT (USD 344) in Q2, 2018 as against RMB 2360/MT in Q1 2018. While the same was recorded RMB 2055/MT in Q4, 2017. The monthly average price for Jun’18 month remained at RMB 2,350/MT (USD 347) as against RMB 2,330/MT in May’18.
Chinese scrap exports fell 91% M-o-M in Jun’18 – China exported just 7,182 MT ferrous scrap recording a sharp drop of 91% M-o-M in Jun’18 as against 76,033 MT ferrous scrap in May’18. On yearly premises, ferrous scrap exports witnessed sharp fall by 96% Y-o-Y in Jun’18 as against 201,680 MT scrap imports in Jun’17.
Notably, Chinese ferrous scrap exports in Jun’18 hit last 15 Months’ low as earlier to this, lowest ferrous scrap recorded at 414 MT in Mar’17.
In early June, General Administration of Customs the department under Chinese Government responsible for smooth functioning of international trades, arrested total 245 suspects in special action towards cracking down smuggling of ferrous scrap which was being exported to South East Asian countries illegally without paying 40% export duty. Following this scrap exports from China have come down significantly.
During H1 2018, China exported 332,797 MT ferrous scrap, up 12% Y-o-Y as against 297,650 MT recorded in H1 2017.
China exported nearly 170,107 MT ferrous scrap in Q2-2018, down 5% Q-o-Q as against 162,690 MT imports recorded in Q1-2018. The country observed significant fall of 43% Y-o-Y in Q2’18 as against 297,168 MT ferrous scrap exports recorded in Q2-2017.
Vietnam remains largest importer of Chinese ferrous scrap occupying more than half share in total Chinese ferrous scrap exports. Followed by other importers like Indonesia, Malaysia, Japan, Thailand and India.
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