Japan – the world’s third largest ferrous scrap exporter registered a significant rebound in scrap export in Feb’21. The export volumes stood at 0.62 mn t (up by 29% m-o-m) in Feb’21 as compared to 0.48 mn t in Jan’21. Higher Japanese scrap export demand and weaker performance of domestic steel market resulted an increase in exports in Feb’21.
Japan produced 7.5 mn t of crude steel in Feb’21, down by 5.6% m-o-m according to the WSA data.
South Korea overtakes Vietnam as the largest importer after 10 months – South Korea’s monthly scrap import figures from Japan were seen at 0.24 mn t, surging by 71% from Jan’21 and surpassing Vietnam after a gap of 10 months. Hyundai Steel has resumed operations in its 70 t and 80 t Incheon plant’s steel mill, which was shut down from Oct-Dec’20 for scheduled maintenance. The factories started to produce at full capacity by the end of Jan’21, as per SteelDaily report.
SteelMint assessment for Japanese scrap export stood at JPY 41,900/t FoB Japan in Jan’21 as compared to JPY 39,325/t a month ago.
Japanese scrap export volumes to Vietnam recorded 0.22 mn t with 10% growth m-o-m in Feb’21. SteelMint’s monthly assessment for Japanese bulk H2 stood at $455/t, CFR Vietnam level during Jan’21, up by 6% from Dec’20.
Other major importers of scrap were Taiwan and Bangladesh at 0.07 mn t and 0.04 mn t respectively.
Exports to China double in Feb’21 – Ferrous scrap export volumes to China doubled at 0.01 mn t in Feb’21 as compared to the previous month and jumped up fourfold from Feb’20, since China has lifted restriction on ferrous scrap imports from Jan’21.
Outlook – Japanese scrap demand continues to remain robust. However, availability of vessels and freight volatility may remain a concern for Mar’21 volumes.
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