Pakistan Emerges as the Largest Importer of South African Ferrous Scrap

Pakistan has emerged as one of the major importers of South African ferrous scrap in Q1 CY17. The country imported around 0.2 MnT ferrous scrap in CY 2016. The imports from Pakistan have increased over the time. According to customs data maintained with SteelMint, "In Q1 CY17 Pakistan surpassed India to become the favorite export destination of South Africa ferrous scrap exports. Pakistan imported 0.058 MnT in Q1CY17 whereas India imported 0.04 MnT ferrous scrap from South Africa.

South African export of ferrous scrap has decreased to 0.14 MnT in Q1 CY17 against 0.19 MnT in Q4 CY16. The reason from drop according to SteelMint analysis can be said as the new policy in South Africa was passed that the demand for ferrous scrap in domestic market would be given the first priority and then the export would be done.

Pakistan imports from South Africa decreased by 3% if compared quarterly as the country imported 0.061 MnT in Q4 CY16 and 0.058 in Q1 CY17. However on yearly premises it increased by 31% as the country imported 0.044 MnT in Q1CY16.

India's imports of ferrous scrap from South Africa has decreased 49% Y-o-Y as the country imported 0.044 MnT in Q1 CY17 against 0.086 MnT in Q1 CY16. The imports were also down by 45% on quarterly basis as the country imported 0.081 MnT of ferrous scrap in Q4 CY16.

Pakistan to further increase ferrous scrap imports in coming years- Pakistan imported nearly 3.5-4 MnT ferrous scrap in CY16. The figure is expected to grow further to 4.5-5 MnT down the line. Pakistan's rising crude steel output will further increase scrap imports.