China: Ferrous scrap imports up 4% m-o-m in Nov’22

China’s ferrous scrap imports stood at 77,820 tonnes (t) in November 2022 compared to 75,143 t in October, up 4% m-o-m.

However, during the period January-November 2022, import volumes were at 0.40 mnt, down by 17% as compared to CPLY.

Chinese mills began sourcing ferrous scrap from nations other than only the key exporters and a major chunk of imports came from the UK, particularly since the last couple of months.

The import volume of ferrous scrap remains high amid anticipation of a boost in demand before the construction season.

Country-wise shipments-

• Imports from Japan up m-o-m: Japan exported 25,279 t of scrap to China in November, a notable rise of 45% as against 17,405 t in October, and import volumes were up by over 65% y-o-y as against 15,205 t in November 2021.
• Imports from South Korea up m-o-m: Chinese mills imported a total of 4,493 t of ferrous scrap from South Korea in November, an increase of 38% compared to 3,247 t in October.
  Similarly, y-o-y imports from the country were up 5% from 4,291 t in November 2021.
• UK emerges top exporter: Imports from the UK have surged during the last two months. In October, these comprised 67% of the total ferrous scrap imports into China, at 51,067 t and the share from the UK was 57% at 44,395 t in November.

Imported Japanese H2 scrap prices: As per SteelMint assessment, Japanese H2 scrap prices to China stood at $378/t CIF in mid-December as against $360/t during mid-October, a rise of 18/t over a month.

Outlook: As the new exporting countries add volume to China’s imports, and domestic scrap prices continue to rise, it is expected that buyer interest may increase in the near future. Winter restocking amid suitable offers from exporting origins like Japan and South Korea may be expected.