Japan: Ferrous Scrap Exports Move Up in CY 2019

Japan, the world’s third-largest crude steel producer witnessed an increase in its ferrous scrap exports by 3% on a yearly basis. The country exported 7.41 MnT of scrap in CY’19 as compared to 7.22 MnT registered in CY’18, according to recent data released by the customs department.

On a monthly basis, ferrous scrap export increased by 15% M-o-M in Dec’19. The country exported 0.75 MnT of scrap in Dec’19, as against 0.65 MnT exported in Nov’19. Notably, the highest scrap export registered in Dec’19 during CY’19. On a yearly basis too, scrap exports have increased by 10% Y-o-Y in Dec’19 from 0.67 MnT exported during the same period in Dec’18.

In CY’19 South Korea remained the largest scrap importer with 52% of share in total scrap exported by Japan, as it imported 3.83 MnT, down by 3% Y-o-Y as compared to 3.96 MnT imported in CY’18. Followed by Vietnam with a 30% share, as it imported 2.21 MnT scrap in CY’19, up by 29% Y-o-Y as against 1.57 MnT in CY’18.

Apart from ferrous scrap Japanese exports of semi-finished, finish flat & long steel observed a decrease on a yearly basis in CY’19.

Semi Finish: Japan’s semi-finished exports observed a decrease in CY’19. It has exported 3.2 MnT of semi-finished during CY’19, down by 13% Y-o-Y as against 3.69 MnT exported in CY’18. Taiwan remained the largest importer, as it imported 1.32 MnT in CY’19 (down by 25% Y-o-Y). Other major importers- South Korea and Thailand which imported 0.91 MnT (down by 3% Y-o-Y) & 0.55 MnT (up by 12% Y-o-Y) in CY’19 respectively.

Finish Long: Finish long exports from Japan decreased by 14% Y-o-Y to 2.05 MnT in CY’19 as against 2.39 MnT exported in CY’18. South Korean finish flat imports decrease by 12% Y-o-Y to 0.72 MnT in CY’19 as against 0.78 MnT imported in CY’18. Followed by other major importers like Thailand, China & the USA which imported 0.30 MnT (down by 14% Y-o-Y), 0.23 MnT (down by 12% Y-o-Y) and 0.20 MnT (down by 13% Y-o-Y) respectively in CY’19.

Finish Flat: The Japanese finish flat steel exports tumbled by 6% to 24.67 MnT in (Jan-Dec) CY’19 in comparison with 26.21 MnT in a similar time frame of CY’18. Indian and Chinese steelmakers cut their allocations for the imports and shifted interest to cater to their domestic market in the final quarter of CY’19.

Also, competitive offers from Indian steel mills to Vietnam, in turn, lead to a decline in nations finish flat steel exports in CY’19. Also, the global economic slowdown owing to the prolonged US-China trade spat and falling steel prices from July-to-October months weighed on the nation’s exports. However, on a monthly premise, the nations finish flat exports inched up by 3% to 2.05 MnT in Dec’19, which was 2 MnT in Nov’19

According to WSA (World Steel Association), Japan produced 99.3 MnT of crude steel in CY’19, down by 4.8% compared to 104.3 MnT in CY’18.

Quantity in MT, 
Source: SteelMint Research & Customs Data