South Korea's ferrous scrap imports fall sharply in Jan'24

In January 2024, South Korea recorded a notable decline in ferrous scrap imports, amounting to 127,477 tonnes (t). This figure represents a substantial decrease of 44% from the 227,089 t reported in December 2023. Furthermore, on a yearly basis, there was a significant drop of 58% compared to the 301,742 t imported in January 2023.

It's worth mentioning that the primary sources of these imports were Japan and the US, with Japan contributing the majority share, accounting for over 80%.

Country-wise imports

Imports from Japan fall 26% m-o-m: In January 2024, South Korean mills experienced a notable decline in scrap imports from Japan, receiving around 108,368 t. This represents a 26% decrease compared to December 2023, when imports amounted to 146,345 t. Moreover, on an annualised basis, imports plummeted by 59% from January 2023, which saw imports totaling 265,811 t.

Imports from the US plunge: In January 2024, imports from the US amounted to 9,174 t, representing a substantial 75% decline from the 36,389 t reported the previous month. Additionally, compared to January 2023, scrap imports from the US sharply decreased by 43%, down from 16,127 t.

Billet exports fell, imports rise

South Korea's steel billet exports fell by 58% m-o-m to 14,441 t in January 2024 as against 34,806 t in December 2023, as per data released by the customs. Japan was the largest importer with 7,186 t followed by Mexico with 5,057 t. Meanwhile, export volumes decreased by 35% y-o-y from 22,323 t in January 2023.

South Korea's steel billet imports rose by 48% m-o-m to 149,494 t in January 2024 as against 101,230 t in December 2023. Japan was the largest exporter with 83,209 t, followed by Brazil with 53,995 t. Meanwhile, import volumes increased by 75% y-o-y from 85,394 t in January 2023.

Outlook

In February, it is anticipated that South Korean mills will exhibit restrained interest, largely due to domestic scrap prices persisting below seaborne purchases.