Indonesia's ferrous scrap imports fall 50% during Jan-Aug'20

Indonesia has observed a steep decline in its ferrous scrap imports by 50% y-o-y during Jan-Aug'20. Imports were recorded at 0.79 mn t during Jan-Aug'20 compared to 1.56 mn t in CPLY, according to customs data maintained with SteelMint.

However, in Aug'20, the country witnessed rebound in scrap imports by 71% and were recorded at 0.12 mn t in Aug'20 as against 0.07 t in Jul'20. Australia remained the largest scrap supplier to Indonesia in Aug'20, observed a sharp increase by 75%, volumes stood at 31,613 t in Aug'20. Other suppliers were Hongkong and Malaysia.

Market highlights -

• Imported scrap prices to Indonesia continue to increase from July to August following the global price trend which boosted scrap imports
  
  
• P&S scrap offers in containers from the USA increased from $270/t CFR Indonesia in Jun'20 to $280/t CFR in Jul'20
  
  
• Billet imports in Indonesia rose by 55% in Aug'20. Indian and Russian imports in the country have fallen sharply as the country's buying has shifted towards Ukraine. Indonesia and Malaysia are very active in the market and attracted Chinese buying interest amid rising offers from India supported by duty advantages over non-ASEAN countries
  
  
• Finished steel prices also increased by Indonesian buyers to enjoy margins and resume billet bookings which increases scrap imports.
  
  

Quantity in t
Source: SteelMint stats & customs data

Outlook - After the announcement of extending the registration time for imported scrap licences to 1st Jan'21, the market has turned active again, SteelMint has learnt from trade participants.