South Korea: Ferrous Scrap Imports Up 4% in 2018

Scrap imports from the US increased 72% while that from Japan remained stable Y-o-Y in 2018.

South Korea - world's 2nd largest ferrous scrap importer after Turkey has witnessed a marginal rise in scrap imports in CY'18. As per recently released customs data, South Korea imported 6,121,829 MT ferrous scrap in CY'18 as against 5,897,115 MT in CY'17.

According to World Steel Association, the country produced 66.29 MnT crude steel during Jan-Nov'18, up 2% Y-o-Y as against 64.96 MnT last year. It produced 5.92 MnT crude steel in Nov'18, down 4% M-o-M.

Notably, South Korean finish flat and finish long imports have dropped 23% and 30% Y-o-Y in 2018. Falling finish steel imports and increasing special steel production could support the scrap imports further in the near term.

Scrap imports climb 13% M-o-M in Dec'18 - South Korea imported 513,402 MT ferrous scrap in Dec'18, up 13% M-o-M against 456,217 MT imports recorded in Nov'18. But on a yearly premises imports decreased 13% Y-o-Y in Dec'18 against 591,377 MT ferrous scrap in Dec'17.

Japan remained the largest ferrous scrap supplier to South Korea - Japan exported 274, 410 MT in Dec'18, slipped 2% M-o-M as against 281,016 MT in Nov'18 occupying the highest 53% share in total scrap imports. Japanese domestic scrap prices declined sharply resulting in limited exports in Dec'18.

On continuing bulk bookings from the US by major steelmakers, US scrap exports have observed a second successive rise to South Korea in Dec'18. US exports recorded at 98,176 MT, up 5% M-o-M as the country remained the second largest supplier occupying 19% share.

Russia remained the third largest supplier registering jump of 50% M-o-M in Dec'18. It supplied 90,977 MT ferrous scrap in Dec'18 against 60,503 MT recorded in Nov'18. New Zealand supplied 21,753 MT in Dec'18 that of the nil volume earlier month.

As per Steeldaily's reports, average import price for Japanese scrap fell by around USD 30/MT in Dec'18 and that by USD 15-25/MT for US and Russian scrap. Average prices for Japanese H2, US HMS 1 and Russia A3 scrap imported to South Korea stood at USD 296/MT, USD 322/MT and USD 329/MT respectively.

South Korean steel mills have shifted their interest from Japanese mid grade scrap (H2) to high-grade US scrap on quality concerns. Many steelmakers focused on long term contracts with US and Russian scrap yards lowering buying from the spot market in CY18.

Country wise South Korea ferrous scrap imports -

Quantity in MnT,
Source: SteelMint Stats