Japan: Ferrous scrap exports increase by 10% on month in April

Japan, a prominent ferrous scrap exporter globally, reported a 10% hike in scrap exports at 650,000 t in Apr’22 as against 590,000 t in Mar, as per customs data maintained with SteelMint.

However, on a y-o-y basis, exports dropped 24% from 860,000 t in Apr’21.

Import market scenario

• Exports to South Korea move higher: South Korea retained its position as the largest buyer of Japanese scrap at 360,000 t as against 330,000 t last month. The country lifted the demand for high-grade material and buyers booked Japan’s material itself as shipments from Russian counterparts are limited.
• Vietnam exports almost up two-fold: Ferrous scrap exports to Vietnam rebounded in Apr’22 and became the second-largest importer of Japanese scrap. The country imported 0.19 mnt in Apr compared to 0.1 mnt in the previous month. After the Tet holidays mills actively procurred scrap and currency depreciation also pulled the buyers attention for Japanese scrap.
• Interestingly, Bangladesh one of the largest buyer of Japanese scrap remained less active from booking bulk cargoes from Japanese suppliers due to high freight rates and instability in the market.

Japanese H2 scrap prices rise: The monthly average price in February went up by JPY 6,000/t to JPY 62,000/t FOB. The prices have surged due to scrap shortage and improved buying activities along with the Yen depreciation.

Outlook
Japanese scrap export prices have started dropping from mid-Apr onwards amidst falling overseas demand on the back of lower steel prices. Also, South Korean mills had shifted preference to local scrap, which impacted import volumes.