Thailand: Ferrous Scrap Imports Hit 1 Year Low in June

Thailand-one of the emerging Southeast Asian market in terms of the steel industry has witnessed a sharp fall in its ferrous scrap imports in June’18. As per recently released customs data, Thailand imported 88,530 MT ferrous scrap in June’18 which has decreased by 52% M-o-M as against 185,546 MT imports recorded in May’18.

Notably, Thailand hit last 1 year lowest scrap imports in June as earlier to this, Thailand imported 74,605 MT ferrous scrap in Jul’17, which also stood as lowest imports during H1 2018.

On yearly premises, ferrous scrap imports fell 30% Y-o-Y in June’18 as against 125,588 MT ferrous scrap imports in June’17.

In June’18, Thailand’s Pig Iron imports increased multi fold and recorded at 49,725 MT as against 2,134 MT while billet imports stood at 119,959 MT as against 157,835 MT in May’18. Sharp rise in imports of pig iron apart from high strong global scrap prices could have resulted in fall in ferrous scrap imports in Jun’18.

United Kingdom stood as the largest supplier of ferrous scrap to Thailand – In June’18, United Kingdom supplied highest 41,506 MT ferrous scrap to Thailand occupying 47% share. United Kingdom scrap exports increased multi fold on monthly basis in June’18 as against minor volumes in May’18. While USA supplied minor volumes (1,772 MT) due to slow down in activities over the imposition of USA import tariffs.

Myanmar remained second largest supplier and exported 9,828 MT ferrous scrap in June to Thailand, down by 12% M-o-M as it supplied 11,206 MT in May’18. Trinidad & Tobago stood as the third largest exporter supplying 6,151 MT scrap, which has remained stable on monthly basis.

Followed by Costa Rica (3,620 MT), Australia (2,976 MT) and Panama (2,437 MT) in June’18. Major exporters like Japan, South Africa and New Zealand witnessed almost nil exports to Thailand.

Thailand imported 377,917 MT ferrous scrap in Q2-2018 down 6% Q-o-Q as against 401,380 MT imports recorded in Q1-2018. On Y-o-Y basis, it observed significant rise of 34% in imports as against 282,047 MT ferrous scrap imported in Q2-2017.

Thailand’s ferrous scrap imports increase 31% Y-o-Y during H1’ 2018 – Thailand imported 779,297 MT ferrous scrap during H1’18, up 31% Y-o-Y as against 595,641 MT imports during the first half of last year.

United States remained largest scrap exporter as it occupied highest 26% share of total scrap imports to Thailand followed by other major exporters like Myanmar (14%), Australia (7%), United Kingdom (6%), Trinidad & Tobago (5%), South Africa (4%) and New Zealand (4%) respectively.

Thailand’s crude steel production increased by 5% Y-o-Y during Jan-May’18 – Amid rising crude steel production in the country, Thailand witnessed five years’ highest ferrous scrap imports last year which stood at 1.49 MnT as against 0.90 MnT in CY16. According to WSA, during first five months of CY18 Thailand has produced 1.91 MnT crude steel as against 1.81 MnT in Jan-May last year.

Thailand steel industry is majorly dominated by rolling mills and most of them make use of electric arc furnace route thus making the country a major scrap consumer. Few of the major steel include G Steel, Tata Steel Thailand, Sahaviriya Steel Industries PLC etc.

Country-wise Thailand ferrous scrap imports –

Quantity in MnT,
Source: SteelMint Stats