South Korea: Ferrous scrap imports drop 14% m-o-m in September

South Korea's ferrous scrap imports stood at 238,830 tonnes (t) in September, down 14% in comparison with 277,830 t in the previous month. Similarly, on an annualised basis, imports plummeted 27% in comparison with 327,705 t in the corresponding period last year.

South Korean steel mills operated at 70% capacity during the month due to sluggish finished steel sales along with stagnant demand from the construction sector, as a result of which overall scrap consumption decreased. For instance, the top construction companies have received orders for about 150 projects that were unable to start construction, leading to an industry-wide slowdown.

Country-wise imports

Japan: Scrap imports from Japan aggregated 168,196 t, marking a drop of 5% as against 177,650 t in the previous month. Imports declined by 38% y-o-y compared to September 2022's 270,260 t.

US: Imports from the US dropped significantly from 48,099 t in August to a mere 14,601 t in September, registering a decline of 70% m-o-m. However, on a y-o-y basis, scrap imports jumped 29% compared to 11,354 t seen in the same period last year.

Russia: Imports of ferrous scrap from Russia stood at 19,650 t in September, reflecting a significant decline of 52% m-o-m and 37% y-o-y.

Billet exports rise, imports drop

South Korea's steel billet exports marked a significant rise of 162% to 107,204 t in September from 40,993 t in August. During the first nine months of the current calendar year, imports registered a whopping 133% rise to 392,575 t as against 168,474 t in the year-ago period, as per customs data. Japan was the top importer at 211,459 t followed by Mexico at 116,091 t in the period.

Billet imports into South Korea decreased by 15% m-o-m to 88,930 t in September from 104,199 t a month ago. In January-September, imports fell by 18% y-o-y to 1.03 mnt as against 1.25 mnt in the year-ago period, as per customs data. Japan emerged as the major exporter with 881,851 t followed by China with 69,983 t.