South Korea: Ferrous Scrap Imports from USA Rise by 27% in CY'19

South Korean scrap imports from the USA have increased significantly in 2019 by 27% on a yearly basis. The country has exported 1.09 MnT during the CY'19, in comparison to 0.86 MnT of scrap in CY'18. Notably, imports from the USA were increased four-times to 0.07 MnT in Sept'19 against 0.02 MnT in Aug'19. Notably, the highest quantity of scrap exported in March'19 with 0.24 MnT.

However, on a yearly basis total scrap imported by South Korea has witnessed a marginal increase by 2% Y-o-Y to 6.25 MnT in CY'19 as compared to 6.14 MnT imported in CY'18, according to recent data released by the customs department. Interestingly, ferrous scrap imports were reported at 3.51 MnT during H1'19, However, in H2'19 the imports registered a drop by 78% and were recorded at 2.73 MnT.

Japan remained the largest scrap supplier with 62% of share in total scrap imported by South Korea. The country's ferrous scrap exports remained stable on a yearly basis as it exported 3.90 MnT during CY'19 as against 3.93 MnT in CY'18. Followed by USA, with 18% share. On the other hand, Russia, another prominent scrap supplier to South Korea witnessed its share decreased to just 11%, exporting 0.71 MnT in CY'19, down by 23% Y-o-Y as compared to 0.92 MnT exported in CY'18.

Increasing preference of South Korean buyers to procure scrap from USA at the cost of Japan & other origins could be attributed to the relatively favorable price levels, while, strict radioactive inspections of Japanese scrap carrying vessels further encouraged South Korean buyers to look for other origins.