South Korea: Ferrous scrap imports decrease 13% m-o-m in August

South Korea, one of the major buyers of ferrous scrap, imported 0.28 million tonnes (mnt) in August 2022 against 0.32 mnt in July, a drop of 13% m-o-m, as per SteelMint's customs data.

The drop in imports was because of a shift in buyers' interest towards domestic scrap due to its cheaper availability compared to imported one.

On a y-o-y basis too, imports decreased by 44% compared to 0.5 mnt in August 2021.

Country-wise breakup-

• Imports from Japan increase: Japan continued to be the largest exporter of ferrous scrap to South Korea at 0.21 mnt in August. The volumes were higher by 17% compared to 0.18 mnt in July due to decline in prices.
  
  
• Imports from USA drop: South Korea's scrap import volumes from the USA dropped by 38% to 0.05 mnt in August against 0.08 mnt in July.
  
  
• Imports from Russia plunge m-o-m: Imports from Russia fell by over 66% to 0.01 mnt in August from 0.03 mnt in July.
  
  

Outlook
South Korea may cut back its imports on availability of domestic scrap at reasonable prices. This may result in an increase in stockpiles in Japan and drop in prices eventually, SteelMint notes.