South Korea: Ferrous Scrap Imports Stable in Q1-2018

South Korea- world’s 2nd largest ferrous scrap importer after Turkey has witnessed stabilized scrap imports in the first quarter of CY18.

As per recently released customs data, South Korea imported 1.52 MnT ferrous scrap in Q1-2018 which remained almost stable as against 1.54 MnT imports recorded in Q1-2017. On Q-o-Q basis, South Korea observed slight fall of 4% in imports as against 1.59 MnT ferrous scrap imported in Q4-2017.

South Korea imported 0.47 MnT ferrous scrap in Mar’18, on yearly premises, South Korean ferrous scrap imports decreased 8% Y-o-Y in Mar’18 as against 0.51 MnT ferrous scrap imports also in Jan’17.

South Korean demand for scrap remained strong in Q1-2018 despite high offers from major suppliers like Japan and Russia. In Q1-2018, South Korea witnessed sharp pick up in production rates and increased finish steel inventories in hand. In CY18, South Korea is observing increasing local consumption of scrap.

According to world steel association, crude steel production in South Korea remained almost stable during Jan-Feb’18. South Korea produced 11.71 MnT crude steel in Jan-Feb’18 as against 11.49 MnT during the same period of last year. According to Korea Iron and Steel Association, South Korean scrap consumption stood around 47 MnT, up 10% Y-o-Y in 2017.

Japan remained largest ferrous scrap supplier to South Korea in Q1’2018 – Japan remained largest ferrous scrap exporter to South Korea again in Q1, 2018. It supplied 1.08 MnT ferrous scrap occupying highest 71% share in total imports to South Korea which has increased 10% Y-o-Y as against 0.98 MnT ferrous scrap exported in Q1 last year.
Followed by Japan other major exporters were Russia (0.17 MnT, -19% Y-o-Y), United States (0.14 MnT, -30% Y-o-Y) and United Kingdom (0.04 MnT, stable Y-o-Y) respectively to South Korea in Q1-2018.

South Korean scrap imports fall 5% in Mar’18 – South Korea has imported 466,173 MT ferrous scrap in Mar’18 registering almost 5% fall as against 489,599 MT ferrous scrap in Feb’18.

In Mar’18, Japan exported 376,708 MT ferrous scrap occupying 80% share of total scrap imports to South Korea. Although ferrous scrap export prices from largest supplier Japan remained bullish, the demand for high-grade Japanese scrap from South Korean steel makers remained strong in Mar’18.Japan witnessed 3% M-o-M growth as against 364,444 MT exports in Feb’18.

Russia remained second highest exporter of ferrous scrap and supplied 39,785 MT (down 39% M-o-M) to South Korea. Followed by New Zealand (20,370 MT) and United States (8,901 MT). While other major exporters like United Kingdom and China witnessed nil exports to South Korea in Mar’18.

Country wise South Korea ferrous scrap imports –

Quantity In MnT,
Source: SteelMint Stats