Japan: Ferrous Scrap Exports Edge Up in August on Rising Vietnamese Purchase

Japan, world’s third largest ferrous scrap exporter after EU-28 and US, witnessed upturn in scrap exports in Aug’18 after witnessing fall in July. As per recent customs data, Japan exported 605,933 MT ferrous scrap in Aug’18, up 2% M-o-M as compared with 594,674 MT ferrous scrap exports recorded in Jul’18. Scrap imports from Vietnam increased 18% M-o-M while imports from Bangladesh and Thailand increased significantly in Aug’18 resulting in rising scrap export volumes from Japan.

On yearly premises, Japan’s ferrous scrap exports noted a fall of 14% Y-o-Y as against 710,696 MT scrap exports in Aug’17. The country has been witnessing a considerable fall in its scrap exports this year against last year majorly on falling Chinese demand.

Speed up in production activities after summer amid cheaper electricity rates could have resulted in rising domestic consumption and crude steel production in Aug’18. As per statistics released by World Steel Association, Japan’s crude steel production observed upturn after two successive fall which stood at 8.81 MnT in Aug’18 as against 8.42 MnT in Jul’18.

Japanese scrap export prices remain on uptrend in Aug’18 – Average Japanese H2 scrap prices turned up at JPY 35,500-36,000/MT, FoB in August as against JPY 34,000-34,500/MT, FoB levels in Jul’18. Higher scrap exports prices as compared to global levels kept export activities bounded to South Korea, China and Taiwan from Japan in Aug’18.

South Korea remains the largest importer of Japanese scrap – South Korea imported 301,881 MT ferrous scrap occupying 50% share in total Japanese scrap exports in Aug’18 , which have come down 5% M-o-M as against 318,431 MT in Jun’18. Major South Korean steelmaker kept away from Japanese scrap amid high price expectation and remained preferring USA and Russia bulk cargoes over Japanese H2.

Second largest importer, Vietnam imported 153,345 MT (up 18% M-o-M) followed by China (68,120 MT, down 20% M-o-M) and Taiwan (43,547 MT, down 22% M-o-M) from Japan. Other major importers like Bangladesh (22,492 MT) and Thailand (10,563 MT) observed rise in scrap imports from Japan by multi-fold in Aug’18.

Japanese ferrous scrap exports decline 8% during Jan-Aug’18 – Japan exported 4.88 MnT ferrous scrap during Jan-Aug’18, down 8% Y-o-Y as against 5.32 MnT exports during the same period last year. Falling demand from major importers like China, Taiwan and other Asian markets, slowdown in purchases of low grade and H2 scrap from South Korea along with strong domestic demand on Olympics-2020 constructions have resulted in lowering scrap exports from Japan in CY18.

During the first eight months of 2018, Japan’s crude steel production edge up marginally to 70.19 MnT which was recorded at 69.64 MnT in the same period last year.

Country-wise Japan ferrous scrap exports –

Quantity  in MnT,
Source: SteelMint Stats