Thailand: Ferrous Scrap Imports Rise 33% Y-o-Y in July

Thailand-one of the emerging Southeast Asian market in terms of the steel industry has witnessed a sharp rise in its ferrous scrap imports in Jul’18. As per recently released customs data, Thailand imported 99,358 MT ferrous scrap in Jul’18 which has increased by 33% Y-o-Y as against 74,605 MT imports in Jul’17 which were recorded at lowest in CY17.

Sharp rise in scrap based crude steel production, fall in imports of pig iron along with marginal plunge in global scrap prices could have resulted in rise in ferrous scrap imports in Jul’18.

Thailand’s monthly crude steel production hit 1 year high in July – Amid rising crude steel production in the country, Thailand witnessed last 1 years’ highest crude steel production in Jul’18 which stood at 0.415 MnT, up 5% Y-o-Y as against 0.394 MnT in Jul’17. According to WSA, during first seven months of CY18 Thailand has produced 2.61 MnT crude steel as against 2.55 MnT during same period last year.

Thailand’s ferrous scrap demand was 3.5 MnT in 2017, while scrap imports nearly doubled Y-o-Y in volume to 1.7 MnT in CY17.

Notably, after hitting last 1 year lowest scrap imports in Jun’18, imports have increased by 12% M-o-M in Jul’18 as against 88,530 MT ferrous scrap imports recorded in June. In Jul’18, Thailand’s pig iron imports decreased sharply and recorded at 5,001 MT as against 49,725 MT while billet imports stood at 137,636 MT in July as against 119,959 MT in Jun’18.

United State stood as the largest supplier of ferrous scrap to Thailand – In Jul’18, United State supplied highest 36,639 MT ferrous scrap to Thailand occupying 37% share which increased multi fold on monthly basis. United Kingdom scrap exports tumbled down in Jul’18 as against highest volumes supplied (41,506 MT) in Jun’18.

Myanmar remained second largest supplier and exported 12,335 MT ferrous scrap, up 26% M-o-M. Philippines (10,415 MT) witnessed sharply increased scrap exports in July. While Trinidad & Tobago stood as the fourth largest exporter supplying 7,165 MT, up 16% on monthly basis. Major exporters like Japan, South Africa and New Zealand have been witnessing very minor exports to Thailand since last couple of months.

Thailand’s ferrous scrap imports increased 31% Y-o-Y during Jan-Jul’18 – Thailand imported 878,655 MT ferrous scrap during first seven months in CY18, up 31% Y-o-Y as against 670,246 MT imports during the same period last year.

United States remained largest scrap exporter as it occupied highest 27% share of total scrap imports to Thailand followed by other major exporters like Myanmar (14%), Australia (7%), United Kingdom (5%), Trinidad & Tobago (5%), Panama (4%) and South Africa (3%).

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 MT,
Source: SteelMint Stats