Japan, one of the top ferrous scrap exporters in the world, logged 27% rise in scrap exports at 606,250 tonnes (t) in September 2022 as against 477,186 t in August, as per data maintained with SteelMint. Import volumes increased to countries like South Korea, Vietnam, and Bangladesh, which pushed up export volumes.
Similarly, on a y-o-y (year-on-year) basis, exports rose by 37% from 443,149 t in September 2021.
Country-wise break up
- Exports to South Korea up m-o-m: Japan exported 279,309 t of ferrous scrap to South Korea in September as against 189,841 t in August, up 47% m-o-m. The country retained the top position as the largest consumer of Japanese scrap amid rising domestic scrap prices.
- Exports to Vietnam inch up: Ferrous scrap exports to Vietnam increased by 29% to 147,423 t in September compared to 114,102 t in August. Scrap bookings in Vietnam remained strong due to increased demand for imported Japanese scrap at affordable prices.
- Exports to Bangladesh and Malaysia increase: Japan’s exports to Bangladesh rose significantly by 207% to 78,692 t in September as against 25,692 t in August. Imports by Malaysia inched up by 64% m-o-m as against 12,475 t in August.
Japanese H2 scrap prices fall: The monthly average price in August stood at JPY 41,750/t FOB.
Outlook
In the near term, market participants anticipate a sharp increase in the price of Japanese scrap due to growing local and overseas demand due to the drive by steel mills to replenish inventories ahead of the upcoming construction season.
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