South Korea: Ferrous Scrap Imports Stable in Oct'18

Scrap imports from Russia climb three fold while that from Japan remained majorly stable.

South Korea - world’s 2nd largest ferrous scrap importer after Turkey has witnessed scrap imports maintaining above 500,000 MT mark since last three months. The country observed inch up in scrap imports by 2% M-o-M in Oct’18. As per recently released customs data, South Korea imported 518,396 MT ferrous scrap in Oct’18 as against 508,750 MT recorded in Sept’18. On yearly basis, imports increased 6% Y-o-Y in Oct'18 against 489,276 MT ferrous scrap in Oct'17.

Japan remained the largest ferrous scrap supplier to South Korea - Japan exported 304,476 MT in Oct’18, up 4% M-o-M as against 292,079 MT in Sept’18 occupying 59% share of total scrap imports. Japanese scrap prices remained high and domestic demand remained strong with steady exports. South Korean steelmakers continued buying high grade scrap from the spot market instead of presenting bids.

Russia stepped up at second largest supplier position registering almost three fold jump in Oct’18. Last month, Russian exports had decreased amid the impact of scrap exports ban. It supplied 102,647 MT ferrous scrap in Oct’18, up 266% M-o-M as against just 27,999 MT recorded lowest of CY18 in Sept’18.

On strong domestic demand, US exported 87,546 MT in Oct’18 as against 166,480 MT in Sept’18. United States remained third largest supplier witnessing fall of 47% M-o-M in scrap exports to South Korea. While other major exporters like United Kingdom and New Zealand continued witnessing nil scrap exports to South Korea.

As per Steeldaily’s reports, average import price in Oct’18 stood at USD 368/MT, CFR almost stable as against last month. Average prices for Japanese H2, US mix grade and Russia A3 scrap imported to South Korea stood at USD 381/MT, USD 354/MT and USD 350/MT respectively.

Outlook - South Korean scrap imports slowed down amid competitive local scrap prices and ample availability of inventories during Oct-Nov’18. Demand for high grade scrap remained supported. Steelmakers turned slightly active after mid of Nov’18, majorly on sharp fall in Japanese export prices and declined global scrap offers.

South Korean scrap imports climb 8% during Jan-Oct’18 - During first 10 months of CY18, South Korea imported 5.16 MnT ferrous scrap, up by 8% Y-o-Y as against 4.79 MnT ferrous scrap recorded during the same period last year. US and UK observed almost 91% and 150% rise in exports to South Korea during Jan-Oct'18 as against last year.

According to World Steel Association, the country produced 60.37 MnT crude steel during Jan-Oct’18, up 2% Y-o-Y as against 59.10 MnT last year. South Korea produced 6.19 MnT crude steel in Oct'18 up 6% M-o-M.

Country wise South Korea ferrous scrap imports -

Quantity in MnT,
Source: SteelMint Stats