South Korea’s ferrous scrap import volumes in Oct’21 were at 0.38 million tonnes (mn t), down by 7.3% m-o-m against 0.41 mn t in Sept’21, as per data maintained with SteelMint. Import volumes declined due to discrepancies in bids and offers which impacted market activities.
Japan continued to be the largest supplier to South Korea at 0.23 mn t despite a fall in its shipments last month. Other major exporters were Russia and USA at 0.08 mn t and 0.05 mn t respectively.
On a y-o-y basis, South Korea’s ferrous scrap imports increased 9% from 0.35 mn t in Oct’20.
In Jan-Oct’21, Korean mills imported a total of 3.68 mn t of scrap, up 6% as against 3.47 mn t in the same period last year.
Market Highlights
- Imports from Japan fall: South Korea imported 0.23 mn t of Japanese bulk scrap in Oct’21, a marginal decrease of 4% as against 0.24 mn t in the previous month. Exports from Japanese suppliers decreased as they were avoiding contracts with Korean mills due to low export prices. Moreover, they were busy trading in the domestic market. Additionally, the hike in freight charges was an obstacle for the major buying countries, including South Korea.
- Imports from US plunge 62%: Japan’s scrap import volumes from USA saw a plunge of 62% to 0.05 mn t in Oct’21 as against 0.13 mn t in Sept’21. South Korean mills preferred Russian scrap over US-origin material over the past two months owing to a steep hike in freight charges and a sudden eruption in Covid cases in the USA.
- Imports from Russia rise sharply: Russian scrap imports into South Korea saw a two-fold increase to 0.08 mn t in Oct’21 as compared to 0.03 mn t in Sept’21. Imports from Russia in October witnessed a surge due to increasing demand from South Korean buyers for A3 grade scrap.
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