China world’s largest steelmaker has witnessed marginal rise in its ferrous scrap imports in 2017. As per customs data, China imported 2.32 MnT ferrous scrap during 2017 registering total growth of 9% Y-o-Y against 2.13 MnT ferrous scrap imports in 2016.
On monthly premises, China witnessed increase in its ferrous scrap imports by 28% M-o-M in Dec’17.China imported 0.23 MnT ferrous scrap in December month as against 0.18 MnT imports in Nov’17. While China’s imports fell 8% Y-o-Y against 0.25 MnT ferrous scrap imports in Dec’16.Notably, import recorded in Dec’16 was highest in CY16.
In Q4-CY17, China imported 0.58 MnT ferrous scrap, up 35% Q-o-Q against 0.43 MnT ferrous scrap imports in Q3-CY17 while imports declined 8% in Q4-CY17 against 0.63 MnT in Q3-CY17.
Increasing scrap consumption ratios in China – In CY17, over a concern of environmental issues, China had closed down obsolete induction furnaces with more than 140 MnT production capacities, however, these have already been replaced by 30 MnT of EAF capacity in 2017 and another 20-30 MnT EAF capacity would be added by 2018. China’s scrap consumption ratio increased to 17-18% in 2017 as compared to 10-12% during CY16. As per estimations of China Association of Metal Scrap Utilization, the scrap consumption in China is expected to have reach 140 MnT in steelmaking during 2017. This could have resulted in increased growth in scrap imports in China in 2017.
Japan remains largest scrap exporter to China; Imports from US jump four-fold –
In 2017, China imported 1.83 MnT ferrous scrap from Japan comprising 79% share of total ferrous scrap imports in China. United States witnessed more than four folds rise in scrap exports to China in CY17, China imported 0.22 MnT ferrous scrap from US in 2017 as against 0.05 MnT in 2016. South Korea remained third largest exporter and it supplied 0.08 MnT ferrous scrap to China stable against last year.
Japan remained the largest ferrous scrap supplier to China occupying almost 87% of total imports in Dec’17. Japan exported 0.20 MnT ferrous scrap in Dec’17, up 25% M-o-M as against 0.16 MnT exports in Nov’17. South Korea exported 0.01 MnT ferrous scrap to China in Dec’17.
Country-wise China ferrous scrap imports –
| Country | Dec’17 | Nov’17 | M-o-M % Change | Dec’16 | Y-o-Y % Change | 2017 | 2016 | % Change |
| Japan | 0.20 | 0.16 | 25.00% | 0.22 | -9.09% | 1.83 | 1.87 | -2.14% |
| United States | _ | 0 | _ | _ | _ | 0.22 | 0.05 | 340.00% |
| South Korea | 0.01 | 0.01 | 0.00% | 0.01 | 0.00% | 0.08 | 0.08 | 0.00% |
| Others | 0.02 | 0.01 | 100.00% | 0.02 | 0.00% | 0.19 | 0.13 | 46.15% |
| Total | 0.23 | 0.18 | 27.78% | 0.25 | -8.00% | 2.32 | 2.13 | 8.92% |
Quantity in MnT,
Source: SteelMint Stats
Leave a Reply