Japan – the world’s leading ferrous scrap supplier observed a decline by 26% m-o-m and stood at 0.66 mn t in Nov’20, as per data recorded with SteelMint. Sharp increase in domestic scrap consumption on improved steel demand resulted in a drop in Japanese scrap exports. Japan’s crude steel production increased to 7.26 mn t in Nov’20 compared with 7.2 mn t in Oct’20.
Vietnam persists as top importer from Japan with 48% share – Vietnam remained the largest buyer and accounted for 48% share in Japan’s Nov’20 scrap exports. Vietnam imported 0.32 mn t in Nov’20, down by 14% as compared to previous month. Vietnamese scrap buyers had been cautious during September to book new slots for late Oct-Nov shipments, due to successive hike in imported scrap prices.
SteelMint’s monthly assessment for Japanese bulk H2 stood at $298/t, CFR Vietnam level during Oct’20, (drop by 2%) as against $305/t, CFR levels in Sep’20.
Vietnam is the only ASEAN country forecasted to have positive growth in 2020, and demand for finished steel is expected to strengthen in the near term. The Government is promoting more construction activities and public investment to promote economic development in the country, according to VSA.
South Korean buyers remain less active for Japanese scrap bookings
South Korea recorded 0.18 mn t in Nov’20 with a decline of 33% in scrap exports to Japan. Supply tightness and preference to domestic scrap on higher import offers have contributed to the drop in volumes. SteelMint assessment for Japanese scrap export stood at JPY 27,165 /t FoB Japan in Oct’20 as compared to JPY 28,250/t a month ago.
Quantity in mn t
Source: SteelMint stats & customs data
Outlook – Due to high steel prices in Japan, scrap export market may likely to remain on lower side in coming months. However, market participants are awaiting to see impact of Chinese comeback in ferrous scrap market as Japan could turn a potential scrap supplier to it.
Leave a Reply