China: Ferrous scrap imports increase by over 35% m-o-m in October

China's ferrous scrap imports stood at 75,143 tonnes (t) in October 2022 compared to 54,006 t in September, a significant increase of 39% m-o-m.

Ferrous scrap import volumes increased as Chinese mills started procuring from other countries, too, other than just the major exporters in view of the upcoming demand surge ahead of the construction season.

However, during January-October this year, imports declined by 27% compared to the corresponding period of last year.

Country-wise breakup:

• Imports from Japan drop: Chinese mills imported 17,405 t of scrap from Japan in October, significantly down by 64% as against 48,129 t in September. Similarly, imports from Japan were up by more than 300% y-o-y as against 3,930 t in the same month last year.
  
  
• Imports from South Korea down m-o-m: China imported a total of 3,247 t of ferrous scrap in October, a decline of 19% compared to 3,985 t in September.
  However, imports from the country were up 35% from 2,413 t in October 2021.
  
  

Imported Japanese H2 scrap prices: As per SteelMint assessment, Japanese H2 scrap prices to China stood at $388/t CIF in September as against $382/t in August, a rise of $6/t over a month.

Outlook: Due to relaxation in Covid-19 restrictions in the country, it is expected that buyers' interest might improve in the near term amid the continuous hike in domestic scrap prices.