GACC: China's stainless steel scrap imports fall by 70% y-o-y in 2024

Mysteel Global: China's stainless steel scrap imports reached around 97,300 tonnes (t) in 2024, representing a sharp 70% decrease compared to the previous year, according to data from the General Administration of Customs (GACC).

In December, stainless scrap imports totaled 9,747 t, a 51.7% drop y-o-y, although there was a 47.4% increase from the previous month, the GACC data revealed.

The sharp decline in full-year imports was mainly due to a significant reduction in shipments from Japan, China's primary supplier of stainless scrap. Imports of Japanese stainless scrap fell by 63.1% last year, totaling just 59,241 t, highlighting the decreased demand for imported scrap from Chinese stainless steel producers.

Industry sources attributed the drop in China's scrap imports to the growing availability of significantly cheaper domestic scrap. The price for 304-grade stainless steel scrap in Wenzhou, East China, was RMB 9,300/t ($1,277/t), while European stainless steel scrap prices were $1,350/t on the same day.

"With added costs like freight, imported scrap has become much less competitive this year," an insider remarked.

Moreover, the lower cost of imported nickel pig iron has made NPI an attractive alternative to stainless steel scrap for domestic producers. The profit margin for producers using imported high-grade NPI to manufacture 304-grade stainless cold-rolled coil was 1.12% as of January 21, up from just 0.22% a month earlier.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.