After witnessing the rise in ferrous scrap exports in November month, China scrap exports have come down by 50% M-o-M in Dec’17 as against exports in Nov’17 on high domestic scrap prices.
China – world’s largest scrap producer as well as consumer has registered fall in its ferrous scrap exports by 50% M-o-M in Dec’17. According to recently released customs data, the country exported 182,320 MT ferrous scrap in Dec’17 compared to 363,628 MT ferrous scrap exports in Nov’17.
In Dec’17, China witnessed sharp increase in its domestic scrap prices and also domestic demand for scrap remained on higher side amid hike in rebar prices
During CY17, China’s ferrous scrap exports summed up to 2.23 MnT which have skyrocketed compared with the minor ferrous scrap exports during CY16. Over a concern of environmental issues, China had closed down obsolete induction furnaces resulting in increased scrap export volumes this year.
In Q4-17 (Oct-Dec’17), ferrous scrap exports from China declined by 23% Q-o-Q as against exports during Q3-17.In the third quarter of 2017, China exported 1,088,437 MT ferrous scrap while which were recorded at 840,938 MT in fourth quarter 2017.
Indonesia continued to remain largest importer of Chinese scrap –
Indonesia remained the largest destination for Chinese ferrous scrap in Dec’17 again and imported 94,799 MT comprising 52% share in total Chinese ferrous scrap exports in Dec’17. Followed by other South-East Asian countries like Vietnam (45,629 MT), Malaysia(14,431 MT) followed by India (10,556 MT), Thailand (5,899 MT), South Korea (5,565 MT) and Taiwan (2,587 MT) occupying shares of 25%, 8%, 6%, 3% and 3% of total ferrous scrap exports respectively.
In CY17, Indonesia occupied highest 31% share of total scrap exports from China, followed by Thailand (14%) Vietnam (14%), Taiwan (12%), Malaysia (8%), India (7%), and South Korea respectively.
Average domestic scrap purchase price in Jiangsu province increased sharply by upto RMB 550/MT in Dec’17 in China. Average price noted highest at RMB 2680/MT in Dec’17 as against RMB 2130/MT in Nov’17. During CY16, the average domestic ferrous scrap purchase price in China was approximated at USD 255/MT (RMB 1625) while in 2017, the average domestic ferrous scrap purchase price raised at USD 330/MT (RMB 2125).
Country-wise China ferrous scrap exports –
| Country | Dec’17 | Nov’17 | % Change M-o-M | Q4 (Oct-Dec’17) | Q3 (Jul-Sept’17) | % Change Q-o-Q | 2017 |
| Indonesia | 94,799 | 143,520 | -33.95% | 335,233 | 306,475 | +9.38% | 690,403 |
| Vietnam | 45,629 | 68,734 | -33.62% | 173,323 | 115,541 | +50.01% | 317,839 |
| Malaysia | 14,431 | 50,963 | -71.68% | 97,618 | 68,220 | +43.09% | 175,714 |
| India | 10,556 | 21,473 | -50.84% | 46,904 | 70,272 | -33.25% | 144,811 |
| Thailand | 5,899 | 30,807 | -80.85% | 55,492 | 251,487 | -77.93% | 318,105 |
| South Korea | 5,565 | 14,859 | -62.55% | 55,393 | 27,328 | +102.70% | 97,376 |
| Taiwan | 2,587 | 10,126 | -74.45% | 23,001 | 153,419 | -85.01% | 272,818 |
| Others | 2,854 | 23,147 | -87.67% | 53,974 | 95,696 | -43.60% | 209,959 |
| Total | 182,320 | 363,628 | -49.86% | 840,938 | 1,088,437 | -22.74% | 2,227,025 |
Quantity In MT
Source: SteelMint Stats & Customs Data
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