Japan: Ferrous scrap exports rise by over 11% m-o-m in May 2024

Japanese ferrous scrap export volumes in May 2024 saw a rise of 11% m-o-m to 0.49 million tonnes (mnt) as compared to 0.44 mnt in April. However, imports dropped by 12% y-o-y from 0.56 mnt in May 2023.

For the first five months of this year, total scrap imports reached 2.4 mnt marking a decline of 9% from 2.7 mnt imported during the same period in 2023.

As per BigMint's weekly assessment for H2 scrap from Japan, prices witnessed a decline of JPY 700/t m-o-m to reach JPY 50,700/t in May last week as compared to JPY 51,400/t in April last week.

Country-wise exports

Exports to Vietnam rise: Imports by Vietnam from Japan increased by 23% m-o-m in May reaching 0.17 mnt from 0.14 mnt. Meanwhile, exports surged 81% y-o-y from 0.09 t recorded in May 2023. Melting scrap prices in Vietnam stood at 375/t CFR towards end-May as compared to $383/t in April, an $8/t decline which drove imports higher.

Exports to Taiwan rise: Ferrous scrap imports by Taiwan from Japan increased by 86% from 0.06 mnt to 0.11 mnt as compared to April. On a y-o-y basis, ferrous scrap imports moved up by 28% from 0.08 mnt recorded in May 2023.

South Korea raises exports: Imports from Japan increased by 23% m-o-m to 0.17 mnt from 0.14 mnt over the last month. On a y-o-y basis, import volumes are down by 65% from 0.23 mnt as compared to May 2023.

Outlook: Imported ferrous scrap volumes are expected to remain range-bound due to the upcoming monsoon season and slow construction activities.