Japan: Ferrous scrap exports rise 23% y-o-y in Jan-Sep’25; Shindanchi shipments to hit 5-year high

• Exports to Vietnam, Bangladesh, India surge exponentially
• Shindachi’s stable chemical composition attracts importers

Japan Metal Daily: Japan’s total ferrous scrap exports reached 5.53 million tonnes (mnt) in January-September 2025, marking a 23% rise compared to 4.49 mnt during the same period last year. This growth reflects strong overseas demand, particularly from Southeast Asian markets.

Shindachi exports drive growth

A key contributor to this surge is “Shindachi,” a high-grade iron scrap mainly generated from punching and cutting thin plates in automobile and electrical equipment manufacturing. Exports of Shindachi have consistently exceeded 100,000 tonnes (t) per month since the second half of last year. In January-September 2025, cumulative exports of Shindachi reached 1.132 mnt, up 30% y-o-y, and are expected to reach around 1.5 mnt in CY’25, the highest in five years.

A processed scrap used in automobiles and electronics, Shindachi has recently seen robust export momentum, likely due to its stable chemical composition, which attracts overseas buyers. Additionally, strong demand and regional scrap demand shifts may have led to an uptick in exports.

Scrap export scenario

While exports to traditional markets such as South Korea declined, shipments to Vietnam, Bangladesh, and India rose significantly. Key destination-wise volumes for January-September 2025 are as follows:

• Vietnam: 441,000 t (up 62% y-o-y)
• Bangladesh: 235,000 t (up 67% y-o-y)
• India: 76,000 t (up ~11 times y-o-y)
• South Korea: 191,000 t (down 10% y-o-y)
• Philippines: 99,000 t (down 31% y-o-y)

Other countries such as Indonesia, Thailand, and Taiwan saw mixed trends, with Taiwan’s imports declining sharply by 56% y-o-y. The growth in India is particularly notable, signalling a shift towards more distant markets.

Outlook

The Chubu Tetsugen Council has been conducting monthly joint bidding since October last year, selling Shindachi both domestically and internationally. Tokyo Steel began purchasing Shindachi at the Tokyo Bay Satellite Yard from last month. As more blast furnace manufacturers convert to electric furnaces, competition for high-quality scrap such as Shindachi is expected to intensify both in Japan and abroad, potentially boosting the country’s exports even further.

Note: This article has been written in accordance with a content exchange agreement between BigMint and Japan Metal Daily.