South Korea: Ferrous scrap imports drop 20% y-o-y in CY'23

Ferrous scrap imports to South Korea amounted to 3.54 million tonnes (mnt) in the CY'23, indicating a 20% decrease from the 4.42 mnt recorded in the same period of the previous year. In December, scrap imports saw a 15% increase, reaching 227,089 tonnes (t) compared to November's 197,593 t. However, in comparison to December 2022, there was a significant 21% decline in scrap imports, dropping from 293,976 t.

Country-wise imports

Imports from Japan drop 16% y-o-y: In the CY'23, South Korea's imports of scrap from Japan amounted to 2.57 mnt, indicating a 16% decrease compared to the corresponding period in the previous year, where imports were at 3.07 mnt. December witnessed a m-o-m uptick of 7%, with imports reaching 0.15 mnt compared to the preceding month's 0.14 mnt. However, when contrasted with December 2022, imports recorded a notable decline of 32%, dropping from 0.22 mnt.

Imports from the US decrease by 28%: In the CY'23, South Korea's imports of ferrous scrap from the United States totalled 0.41 mnt, marking a significant decrease of 28% compared to the 0.57 mnt recorded in the same period of the previous year. Notably, December experienced an increase in imports, rising from 0.01 mnt in the preceding month to 0.04 mnt. Additionally, when compared to December 2022, imports doubled, surpassing the 0.02 mnt reported in that period.

Imports from Russia rise 6% y-o-y: Scrap imports from Russia to South Korea increased by 6% y -o-y in CY'23, reaching 0.35 mnt compared to 0.33 mnt in CY'22. In December, there was a notable uptick as well, with scrap imports rising by 33% to 0.04 mnt compared to 0.03 mnt in November. When contrasted with December 2022, the imports exhibited a remarkable surge of 300%, significantly surpassing the 0.01 mnt reported in that period.

Billets exports, imports drop in CY'23

In the calendar year 2023, South Korea experienced a 24% y-o-y decline in steel billet exports, totalling 518,018 t compared to 685,021 t in the same period of the previous year, according to Customs data. Japan stood out as the primary importer with 259,794 t, followed by Mexico at 167,848 t. Despite this annual decrease, there was a notable m-o-m increase of 36%, with export volumes reaching 34,806 t in December, up from 25,588 t in November.

Conversely, South Korea's steel billet imports registered a 10% y-o-y decrease, amounting to 1.36 mnt in CY'23 compared to 1.52 mnt in the corresponding period of the previous year, according to data from SteelMint. Japan held the position of the largest exporter with 1.17 mnt, followed by China at 105,859 t. However, import volumes experienced a 21% m-o-m decline in December, dropping to 101,230 t from 128,018 t in November.

Outlook

The prospects for ferrous scrap imports by South Korean mills appear to be improving in January, driven by a consistent decline in inventories held by major mills. However, the pace of improvement may be tempered by a slowdown in infrastructure and construction activities.