Japanese Ferrous Scrap Exports Up 38% in Feb’20 on Increased Vietnam Buying

Japan, world’s third-largest crude steel producer witnessed an increase by 38% in its ferrous scrap exports in Feb’20. The country exported 0.87 MnT of scrap in Feb’20, as against the 0.63 MnT exported in Jan’20. However, on a yearly basis, scrap exports have increased by 34% Y-o-Y in comparison to 0.65 MnT reported during the same period a year ago, in Feb’19.

Vietnam remained the largest importer of ferrous scrap with a share of 41% in total scrap exported by Japan, as it imported 0.36 MnT in Feb’20, up by 16% M-o-M, as compared to 0.21 MnT reported in Jan’20. Followed by South Korea with a 31% share, as it imported 0.27 MnT scrap in Feb’20, down by 4% M-o-M as against 0.26 MnT in Jan’20.

Other Japanese steel exports like semi-finished, finish flat & long too observed an increase on a monthly basis in Feb’20, according to the recent data released by the customs department.

Semi-Finished: Japan’s semi-finished export observed a sharp increase in Feb’20. The country has exported 0.39 MnT of semi-finished in Feb’20, increasing by 30% M-o-M as compared to 0.3 MnT of semi-finished exported in Jan’20. On a yearly basis too, exports have registered to 129% Y-o-Y from 0.17 MnT in Feb’19.  Taiwan remained the largest importer with a 36% share in total semi-finished exported by Japan, as it imported 0.12 MnT (up by 17% M-o-M) in Jan’20. Another major importer was South Korea which imported 0.08 MnT in Feb’20.

Finish Long: Finish long export from Japan witnessed an upsurge by 8% to 0.14 MnT in Feb’20 as against 0.13 MnT in Jan’20. On a yearly basis, finish long exports reduced by 22% Y-o-Y from 0.18 MnT exported during the same period a year ago. South Korea stand stable in its ferrous scrap import in Feb’20, as compared to 0.05 MnT imported in Jan’20. Followed by other major importers were Thailand & China which imported 0.02 MnT each in Feb’20.

Finish Flat: The Japanese flat steel exports remained largely stable at 2.15 MnT in Feb’20 as compared with 2.14 MnT in the previous month. However, the same surged by 30% on a yearly premise in Feb’20 in contrast with 1.66 MnT in Feb’19.

On a country wise basis, Japan’s exports to China reduced by 6% due to the lockdown in the latter as a measure to contain the spread of COVID-19 and stood at 0.31 MnT in Feb’20 as compared to 0.33 MnT in the preceding month. Also, the spread of the contagion in the Southeast Asian region led to a 4% decline in exports to South Korea at 0.26 MnT, which was 0.27 MnT a month earlier.

Japan’s crude steel output witnessed a marginal decrease in Feb’20 by 4% M-o-M to 7.92 MnT as against to 8.24 MnT in Jan’20. On a yearly basis too, output increased by 2% Y-o-Y as against 7.74 MnT in Feb’19, according to World Steel Association (WSA).

Quantity in MT
Source: SteelMint Research & Customs Data