China’s ferrous scrap imports stood at 43,427 tonnes (t) in July 2022 compared to 14,423 t in the same period last month, witnessing a mammoth 202% hike on a monthly basis.
In July, Chinese mills were encouraged to buy imported ferrous scrap in order to maintain the supply-demand cycle smoothly after the bearish steel market sentiments in summer.
However, ferrous scrap imports decreased by 51% y-o-y in July compared to 88,178 t in the corresponding month last year, as per SteelMint data.
Country-wise imports
- Imports from Japan rise three-fold: Chinese mills imported 35,122 t of scrap from Japan in July, an increase of over 284% as against 9,157 t in June. The country permits high-grade steel scrap products such as ‘HS grade scrap’ and ‘bushellings’ to be imported.
However, imports fell by 47% against 66,096 t in the same month last year.
- Imports from South Korea increase m-o-m: South Korean mills exported a total of 5,556 t of ferrous scrap in July, a hike of 64% compared to 3,399 t in the last month.
On a yearly basis, however, imports plunged 62% from 14,464 t in July 2021.
Outlook
After the relaxation of regulations that limited China’s imports of foreign scrap and also due to the fact that China is seeking to increase the share of scrap-based steelmaking to tackle carbon emissions, it is expected that imports will rise in the near future.
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