Japan: Ferrous scrap exports slip 25% in H1CY22 on strong domestic demand
Japan, one of the prominent ferrous scrap exporters, recorded a sharp fall of 25% in export volumes in H1CY22 (January-June 2022) to 3.04 million tonnes (mnt) from 4.07 m...
Japan, one of the prominent ferrous scrap exporters, recorded a sharp fall of 25% in export volumes in H1CY22 (January-June 2022) to 3.04 million tonnes (mnt) from 4.07 mnt in H1CY21, as per SteelMint's customs data.
Exports dropped as Japanese suppliers showed less interest in lowering offers further amidst tight domestic scrap generation caused by lower automobile production and strong domestic demand.
Unload country-wise breakup-
- Exports to South Korea up: South Korea remained the major ferrous scrap export destination for Japan in H1CY22. The latter supplied 1.66 mnt to Korea, higher by 19% as against 1.39 mnt in the same period last year. Despite the decrease in Japan's total exports in H1, South Korea retained its position as the largest scrap buyer as major mills were active in importing premium grades owing to tight availability in the domestic market.
- Exports to Vietnam drop: Japan exported 0.7 mnt of scrap to Vietnam in H1, a sharp drop of 52% from 1.45 mnt in the same period last year. Shipments to Vietnam dropped as billets supplies from Russia increased due to lower prices, which reduced demand for Japanese scrap.
- Exports to Taiwan down: Japan's exports to Taiwan saw a significant drop of 34% to 0.23 mnt in the first half of CY22 as against 0.35 mnt in the corresponding period of last year.
However, prominent Japanese buyers such as Bangladesh preferred other prospective sources - USA and the European Union - owing to huge price disparities in the bulk market.
Exports in June down m-o-m
In June 2022, Japan exported 0.47 mnt as against 0.54 mnt in May, a 13% fall m-o-m. South Korea continued to be the largest importer with 0.23 mnt followed by Vietnam and Taiwan at 0.10 mnt and 0.05 mnt respectively in June.
Japanese scrap exports are less likely to improve due to more cost-competitiveness in the domestic market and bid-offers discrepancy from overseas markets.