Japan: Ferrous scrap exports rebound in Feb'22 on improved buying from South Korea, Vietnam

Japan, one of the emerging ferrous scrap exporting countries globally, witnessed more than 70% rise in exports of the same in February, 2022. The country recorded 0.5 million tonnes (mnt) of scrap exports in February against 0.28 mnt in January, as per customs data maintained with SteelMint.

The m-o-m hike occurred due to increased buying activities and recovering demand from the prominent buyers of Japanese scrap. However, bid-offer price disparity kept some buyers less active in the market.

However, on y-o-y basis, the shipments declined by 19% from 0.62 mnt in February, 2021.

Import markets scenario

• Exports to South Korea pick up: Japan exported 0.28 mnt of ferrous scrap to South Korea in February 2022 as against 0.21 mnt in Jan'22, making a sharp rise of 33% m-o-m. Construction activities had picked up in winter in this country, while domestic scrap prices had has gone up, so buyers came back stronger into the imported scrap market to restock.
  
  
• Exports to Vietnam up three-fold: Ferrous scrap exports to Vietnam rebounded in February 2022 making it the second-largest importer of Japanese scrap. The country imported 0.12 mnt in February compared to 0.03 in the previous month. Imports recouped amid an increase in demand for raw materials on improved steel market sentiments, both domestically and overseas. Showing improved performance, Vietnam's finished steel production in January-February, 2022 reached 5.1 mnt, up 1.6% over the same period in CY2021, while finished steel sales reached 5.01 mnt, up 18.5% y-o-y.
  
  
• Export volumes to Taiwan rise: Taiwan's ferrous scrap imports too went up to 6,659 t in Februay as against 11,181 t in the preceding month. Shipments to Taiwan remained high thanks to the mills trying to quicken their pace of construction and hoping to complete the projects ahead of the Chinese New Year holidays.
  
  

Outlook
Japanese traders feel exports might remain firm in the coming month. Yet, market players believe, buyers need to buy material from Japan itself as currently shipments from Russian counterparts are limited and the increased offers have already squeezed buyers' margins.