South Korea: Ferrous Scrap Imports Close to 4 Year High in June

South Korea – world’s 2nd largest ferrous scrap importer after Turkey has witnessed 45 month high imports in June’18. As per recently released customs data, South Korea imported 610,037 MT ferrous scrap in June, scrap imports have exceeded 600,000 MT mark the first time in last 45 months since Sept’2014 when it was recorded at 671,974 MT.

South Korean imports recorded rise of 25% M-o-M as against 486,497 MT in May’18, on yearly premises, imports increased 27% Y-o-Y in Jun’18 as against 480,586 MT ferrous scrap in Jun’17.

In June’18, Japan exported 345,156 MT ferrous scrap occupying 57% share of total scrap imports to South Korea. Although ferrous scrap export prices from largest supplier Japan moved down sharply, the demand for Japanese scrap from South Korean steel makers remained weak in June. Japan witnessed nearly stable exports to South Korea M-o-M as against 347,501 MT exports in May’18.

Russia remained second highest exporter of ferrous scrap and supplied 112,825 MT (stable M-o-M) to South Korea. Followed by United States and United Kingdom witnessing multi-fold scrap exports in June on monthly basis. United States supplied 81,709 MT ferrous scrap in June as against 7,913 MT in May’18 and United Kingdom supplied 52,800 MT in June. While other major exporters like Philippines and New Zealand witnessed sharply declined exports to South Korea in June’18.

Towards closing of Q2-2018, the country witnessed pick up in production rates and increased finish steel inventories in hand after witnessing considerable production cuts for  finish long steel in the country on weakened demand.

South Korea imported 1.59 MnT ferrous scrap in Q2-2018 up 5% Q-o-Q as against 1.52 MnT imports recorded in Q1-2018. On Y-o-Y basis, it observed significant rise of 16% in imports as against 1.37 MnT ferrous scrap imported in Q2-2017.

South Korean scrap imports up marginally during H1’18 – During first half of CY18, South Korea imported 3.11 MnT ferrous scrap which has ascent marginally by 7% Y-o-Y as against 2.91 MnT ferrous scrap imports recorded in H1’2017.

According to World Steel Association, South Korea also witnessed an increase of 4% Y-o-Y it’s in crude steel production in Jan-May’18. The country produced 29.94 MnT crude steel during first five months of CY18 as against 28.88 MnT crude steel production recorded in the same period last year.

According to reports, average import prices of Japanese scrap remained at USD 376/MT, USA scrap at USD 355/MT and Russian scrap 369/MT on CFR South Korea basis in H1-2018 witnessing sharp hike of USD 85-100/MT against last year.

In CY18, South Korea is observing significant increase in consumption of scrap in its crude steel production. While demand for high-grade Japanese scrap remained strong on increasing demand for special steel manufacturing.

Japan remained largest ferrous scrap supplier to South Korea – Japan supplied highest 2.14 MnT ferrous scrap occupying 69% share in total imports and also witnessed 10% Y-o-Y growth in its scrap exports during H1’18 to South Korea. Followed by other major exporters like Russia (0.49 MnT, stable Y-o-Y), United States (0.24 MnT, -8% Y-o-Y) and United Kingdom (0.10 MnT, +150% Y-o-Y) to South Korea in H1’18.

Country wise South Korea ferrous scrap imports –

Quantity In MnT,
Source: SteelMint Stats