South Korea's ferrous scrap imports rise sharply by 56% in Feb'24

In February 2024, South Korea recorded a significant hike in ferrous scrap imports, amounting to 198,909 tonnes (t). This figure represents a substantial increase of 56% from 127,477 t reported in January. However, on a yearly basis, there was a significant drop of 50% compared to 401,407 t imported in February 2023.

It is worth noting that the primary sources of these imports were Japan, the US, and Russia, with Japan contributing the majority share, accounting for over 85% in February.

In February, despite the Lunar New Year and furnace repairs, South Korea's ferrous scrap imports surged over 50% m-o-m, Hyundai Steel's increased imports helped stabilise supply after January's import dip. Additionally, the average import price was $388-390/t, with Japanese scrap at $389-392/t, US-origin scrap at $355-365/t, and Russian scrap at $358-262/t.

Country-wise imports

Imports from Japan rise 60% m-o-m: In February, South Korean mills experienced a notable surge in scrap imports from Japan, receiving around 172,914 t. This represents a 60% hike compared to January when imports amounted to 108,368 t. Moreover, on a y-o-y basis, imports plummeted by 31% from February 2023, which saw imports totalling 250,895 t.

Imports from Russia increase: In February, imports from the US amounted to 16,120 t, representing a substantial increase of 231% compared to 4,870 t reported in the previous month. Additionally, compared to February 2023, scrap imports from the US sharply decreased by 54%, down from 35,390 t.

Billet exports rise, imports decline

South Korea's steel billet exports rose by 305% m-o-m to 58,557 t in February as against 14,441 t in January, as per data released by customs. Mexico was the largest importer with 42,095 t followed by Japan with 16,370 t. Similarly, export volumes increased by 235% y-o-y from 17,486 t in February 2023.

South Korea's steel billet imports were down 12% m-o-m to 132,215 t in February as against 149,494 t in January. Japan was the largest exporter with 87,274 t, followed by China with 24,757 t, while volumes remained absent from Brazil in February. Meanwhile, import volumes increased by 52% y-o-y from 87,239 t in February 2023.

Outlook

In March, South Korean mills are expected to maintain moderate interest in imported scrap. Sources suggest that due to the ongoing economic downturn and surplus inventories, demand for ferrous scrap will not see a rapid increase. This could weaken the momentum for higher scrap prices, with inventory levels likely to remain on an upward trend in the near future.