South Korea: Ferrous scrap imports rise over 30% m-o-m in Jun'23; H1 import volume drop by 22%

South Korea's ferrous scrap imports increased to 415,353 tonnes (t), marking a 33% m-o-m hike in June 2023 compared to May's 311,983 t. However, imports for the first half of the year (H1CY'23) decreased by 22% compared to the same period in 2022, with a total of 2 million tonnes (mnt) imported.

Billet imports in June declined by 17% m-o-m, which can be attributed to rising scrap imports into South Korea. Billet exports from the country in June fell by 39% m-o-m indicating improved domestic steel demand. Notably, Japan continued to be the top exporter of billets to South Korea in June with 116,304 t.

One of the reasons for the rise in scrap imports was the increasing procurement of Russian ferrous scrap, which proved to be cost-competitive. Japan remained the dominant exporter to South Korea.

Country-wise scrap imports

Country-wise data show variations in imports from different countries. Import volumes from Japan, the US, and Russia all increased m-o-m.

• Imports from Japan up significantly: Scrap imports from Japan witnessed a substantial 31% m-o-m increase in June, making it the leading supplier with 306,326 t. In H1CY'23, Japan's total scrap exports to South Korea reached 1.48 mnt, accounting for a significant 74% share.
  
  
• Imports from US rise over 190%: Imports from the US saw a remarkable recovery, surging by 193% m-o-m in June. However, in H1, total exports from the US to South Korea declined by 43% compared to the corresponding period of the previous year, totalling 213,572 t.
  
  
• Imports from Russia inch up: Imports from Russia increased 1% m-o-m reaching 46,969 t in June. However, imports from Russia dropped 20% y-o-y, with 180,241 t in H1CY'23 compared to 226,058 t in the same period of the previous year. Furthermore, the Philippines saw a substantial m-o-m increase of 179% in June, exporting 5,283 t of ferrous scrap to South Korea, contributing to the overall volume of June imports by the country.