South African Ferrous Scrap Exports Fall Marginally in 2018

South Africa observed a fifth successive fall in scrap exports in 2018 since 2013 - SteelMint Data

South African ferrous scrap exports have observed marginal fall in 2018 maintaining a downward trend since 2013. Recently released customs data showed, the country exported 458,548 MT ferrous scrap in 2018, down 1% Y-o-Y as against 463,303 MT in 2017.

South African scrap exports have dropped successively for the last 6 years from 1,605,587 MT in 2013 to 458,548 MT in 2018 amid shifting of interest to other suppliers from major importers like Turkey, Pakistan, Vietnam and Malaysia.

South Asian countries like India, Pakistan and Bangladesh occupied a total 92% share of ferrous scrap exports from South Africa in 2018.

India remained the largest importer of South African ferrous scrap - Except India, all other major importers have observed lowering of scrap imports from South Africa in 2018. Indian scrap imports surged by 60% Y-o-Y to 231,847 MT in 2018. While Pakistan and Bangladesh registered a fall by 32% and 6% Y-o-Y in CY18. Turkey scrap imports from South Africa remained nil since 2016.

Port-wise - Durban port remained the top port for scrap export activities in 2018 recording 217,937 MT ferrous scrap exports occupying 48% share followed by other prominent ports like Johannesburg, Pretoria, Cape Town and Port Elizabeth occupying 16%, 15% and 5% share respectively.

South Africa exported 26,381 MT ferrous scrap in Dec’18, down 31% M-o-M against 38,258 MT in Nov’18. On yearly premises, scrap exports fell 31% Y-o-Y as against 38,206 MT in Dec’17. All major importers could have observed declined scrap imports in Dec'18 on usual seasonal slowdown towards year end.

South African containerized HMS 1&2 scrap prices remained high in 2018 as against 2017. however, the average export price was recorded at USD 325/MT, CFR Nhava Sheva in Dec’18 as against USD 335/MT, CFR levels in Nov’18.

During Q4-CY18, ferrous scrap exports recorded at 101,852 MT, down 16% Q-o-Q and 18% Y-o-Y as against 120,771 MT during Q3-CY18 and 123,659 MT during Q4-CY17 respectively.

Country's pig iron exports climbed 15% Y-o-Y to 625,080 MT in 2018. Rising pig iron exports and crude steel production could also have bounded scrap exports in 2018. South African crude steel production recorded at 6.33 MnT in 2018 as against 6.30 MnT in 2017.