Japan: Ferrous Scrap Exports Down 7% in Oct'18

Imports from Vietnam fell 41% while that from South Korea increased 13% M-o-M in Oct'18.

Japan the world’s third-largest ferrous scrap exporter after EU-28 and US, witnessed fall in scrap exports in Oct'18. As per customs data, Japan exported 567,103 MT ferrous scrap in Oct’18, down 7% M-o-M as against 608,579 MT ferrous scrap in Sept’18. Scrap imports from Vietnam decreased sharply by 41% M-o-M resulting in declined scrap exports from Japan.

On yearly premises, Japan’s ferrous scrap exports noted a fall of 9% Y-o-Y as against 626,323 MT scrap exports in Oct'17. The country has been witnessing considerable fall in its scrap exports this year as against last year majorly on falling Chinese demand.

Japanese scrap export prices tumble in Nov'18 - Average Japanese H2 scrap prices remained at JPY 37,500/MT, FoB in Oct'18. Which tumbled down sharply to an average of JPY 34,500/MT, CFR in Nov'18. Despite sharp fall in prices, weak demand amid ample inventories kept Japanese exports limited to South Korea and Vietnam in Nov’18.

South Korea remained the largest importer of Japanese scrap - South Korea imported 342,944 MT ferrous scrap occupying 60% share in total Japanese scrap exports in Oct’18, up 13% M-o-M. Major South Korean steelmakers continued imports of high-grade Japanese scrap on increased special steel production.

Second largest importer, Vietnam imported 102,571 MT followed by China (93,574 MT, up 13% M-o-M) and Taiwan (22,737 MT) in Oct'18. Other major importers like Bangladesh (Nil volume) and Thailand (256 MT) observed a sharp fall in scrap imports in Oct’18.

Japanese ferrous scrap exports decline 9% during Jan-Oct’18 - Japan exported 6.05 MnT ferrous scrap during Jan-Oct’18, down 9% Y-o-Y as against 6.63 MnT during the same period last year. Falling demand mainly from China and other Asian markets and strong domestic demand on Olympics-2020 constructions have resulted in lowering scrap exports from Japan.

As per statistics released by the World Steel Association, Japan’s crude steel production observed upturn in Oct'18 after a fall in Sept'18. It stood at 8.56 MnT in Oct’18 as against 8.42 MnT in Sept’18. During the first ten months of 2018, Japan’s crude steel production stand almost stable at 87.18 MnT which was recorded at 87.23 MnT same period last year.