Monthly Archives: April 2018

Japan – Flat Steel Imports Decline by 12% in Q1 CY18

According to the latest customs data, Japan flat steel imports which includes 7208 (HR coils /Plates), 7209 (CR coils), 7225 (Electrical sheets), 7210/7212(GP/GC) registered decline of 12% in Q1 CY18 as compared to similar quarter of previous year.

Nation’s flat steel imports stood at 1 MnT in Q1 CY18 against 1.13 MnT in Q1 CY17.

On monthly basis nation’s flat steel imports went down by 11% in Mar’18 to 0.31 MnT against 0.35 MnT in Feb’18. However on yearly basis the same plunged by 18% in Mar’18 against 0.38 MnT in Mar’17.

Grade-Wise Japan Flat Steel Imports in Mar’18

Sub Commodity Mar’18 Feb’18 M-o-M 
(Change in %)
Mar’17 Y-o-Y 
( Change in %)
HRC/Plate 0.16 0.18 -11.11 0.22 -27.27
Galvanized Steel 0.07 0.08 -12.50 0.09 -22.22
CRC 0.06 0.07 -14.29 0.06 0.00
Electrical Steel 0.02 0.02 0.00 0.02 0.00
Others 0.00 0.00 0.00 0 0.00
Grand Total 0.31 0.35 -11% 0.39 -21%

Quantity in MnT
Source-SteelMint Research

Country-Wise Japan Flat Steel imports in Q1 CY18 – In Q1CY18, South Korea exported 0.71 MnT of flat steel. However on monthly basis the same declined by 19% to 0.21 MnT in Mar ‘18 against 0.26 MnT in Feb’18.

Second largest exporter was Taiwan exported around 0.22 MnT of flat steel in Q1CY18.In the month of Mar’18 Taiwan exported 0.07 MnT flat steel for Japan unchanged against previous month.

Lastly, China exported 0.07 MnT to Japan in Q1 CY18. In the month of Mar’18 its stood at 0.03 MnT higher by 50% against 0.02 MnT in previous month.


India: Prakash Industries to Start Operations at its Captive Iron Ore Mine Shortly

Prakash Industries Limited – an integrated steel & power making unit has released quarterly result for the quarter ended on 31st Mar 2018 today i.e. on 30th Apr’18.

During FY’18, the company achieved Net Sales of INR 2,935 Crore and EBIDTA of INR 596 Cr, reflecting a growth of 35% and 125% respectively over the last financial year.

The company is going to start operation at its Sirkaguttu iron ore mine in Odisha from the current quarter (Apr-Jun’18). The mine has EC limit of 1.325 MnT pa.
Further, the company is likely to make operational its Kawardha iron ore mine in Chhattisgarh by April 2019.

The company has tied up for the supplies of iron ore from Odisha miners and NMDC on the long-term basis.

Prakash Industries’ may lower its merchant iron ore sourcing – According to iron ore movement data maintained with SteelMint, Prakash Industries sourced around 0.89 MnT iron ore from Odisha merchant mines primarily – Indrani Patnaik, Rungta Mines and Essel Mining. It also procured 0.02 MnT iron ore from NMDC (C.G.). After the steelmaker commences operations at its captive mine, it may lower its sourcing from merchant mines.

Steel and sponge iron expansion Plans of Prakash Industries – The steelmaker has unveiled its expansion plan of integrated steel plant capacity from 1.20 MnTpa to 3 MnT pa over the next 5 years through internal accruals at its existing location in Champa, Chhattisgarh.

The company is planning to increase its capacity of sponge making by 0.20 MnT p.a. in Sept’18 and 0.2 MnT p.a. till Mar’19.

Future outlook: The Revenue of the Company is likely to grow over 60% in FY 2019(YoY) to around Rs. 4,700 crores with improved EBITDA margin of around 25% owing to expansion, higher utilisation of capacities, better sales realisation and start of mining operations at its Sirkaguttu Iron Ore Mine in Odisha this quarter.


Daily Update: Indian Semis Market Reports Mix Trends

Today, Indian Semis market reported volatility in prices in which prices of Billet & Sponge iron have increased by INR 100-300/MT in East India, while in Central region it unaltered. However, the price fall being reported in Billets in West & South India by INR 300-500/MT (USD 4-8) due to slowdown local inquiries.

SteelMInt’s latest price assessment for induction furnaces billet in Indian market stood at INR 35,400-39,200/MT (USD 532-589) ex-plant. Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,700-22,900/MT (USD 296-344); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

— On 30th Apr 2018 (Monday) INR to USD exchange rate stood at INR 66.49

— BSE Sensex closed at 35,160(+190) on Monday, as against last day (Friday) at 34,969(+256).

Raw Materials

— Indian Silico Manganese prices fall further on poor demand globally resulting price competition in domestic trades.

Semi Finished

— Raipur based big plants have unaltered prices for P-DRI at INR 19,900-20,000/MT ex-plant. Meanwhile, medium size sponge manufacturers offered DR-CLO grade sponge at INR 23,400-23,600/MT ex-plant.

— Rashmi Metaliks in Durgapur, East India, a price trend setter has raised prices by INR 200/MT and offered Sponge P-DRI at INR 21,400-21,500/MT & Billet at INR 36,900-37,000/MT – Sources.

— Bokaro, Jharkhand based a private producer, offering Wire rod for exports to Nepal, Blast furnace grade high carbon at INR 46,500/MT (USD 705) & low carbon at INR 45,500/MT (USD 690) ex-plant. As per officials recent a deal concluded for a rake to Nepal at the same prices.

— Steel grade Pig iron prices in Eastern India hovering at INR 31,800-32,000/MT ex-Durgapur & INR 31,800-32,300/MT ex-plant, Jharkhand. As per private producers, currently they have limited stock and indicates prices to increase further if demands get improved.

— South India – Karnataka based market participants stated, slowdown local inquiries due to upcoming assembly elections in the state which scheduled on 12th May 2018. Sponge iron prices in Bellary, Karnataka one of the merchant supplier of Sponge have declined by INR 200-300/MT and the latest offer assessed for P-DRI at INR 18,700-18,900/MT & C-DRI lumps at INR 19,700-19,800/MT; FeM 80, ex-plant & excluding GST.

— Odisha, Rourkela based couple of merchant billet manufacturers stated, shortage of Billet in local market owing to strong export bookings for Nepal as well as improved out states inquiries specifically from North-east regions. Another, key factor behind supply crunch in billets stated, power shortage which is about 6-8/10 hrs every day. Today’s deal for 100*100mm Billets reported at close to INR 35,500-35,700/MT ex-plant

— Odisha, Rourkela offers for Sponge C-DRI (70:30) hovering at INR 21,200-21,400/MT ex-plant. As per producers ready delivery demand is strong from North India – Punjab and freight cost via road reported around INR 3,200/MT.

— RINL’s (Vizag Steel) 150*150 mm Bloom export tender to Nepal heard have concluded at around USD 510-515/MT (ex-mill) for 5,504 MT (equivalent to 2 rakes).

Finished Steel

— Rathi Steels in North India – Delhi have unchanged their prices d-o-d basis and offering 12 mm Rebars at INR 43,000/MT, excluding GST.

— The suppliers in Raipur have unchanged trade discount on Wire rod amid improve trade volume, size – 5.5 MM at around INR 800-1,000/MT.

— Raipur Power and Steel Ltd has offered Wire Rod (5.5 MM) at INR 40,900/MT & Raw Pellet at INR 6,000/MT, ex-mill & excluding GST.

— Mumbai, Maharashtra based Guardian TMT have increased rebars prices by around INR 200/MT and current offering at INR 40,600/MT (12 mm) ex-work & excluding GST.

— Finish long steel (Bar & rods and Structures) production in India surge by 6% Y-o-Y & M-o-M basis in Mar 2018 and stood at 4.09 MnT.

Reference prices as on 30th April 2018

Products Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 22,900 22,800 23,000 + 300 21,400 19,700
Ex-Rourkela Mix, FeM 80%, +/-1 21,200 21,100 21,300 + 100 20,800 19,800
Ex-Raipur 0-20 mm, -1 mm (20-25%), FeM 82%, +/-1 23,600 23,500 23,700   0 22,900 21,800
Ex-Bellary Lumps, FeM 80%, +/-1 19,700 19,600 19,800 – 200 20,200 20,200
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 21,500 21,400 21,600 + 300 20,000 18,300
Ex-Raipur Lumps, FeM 80%, +/-1 19,950 19,900 20,000 – 50 19,600 19,600
Ex-Bellary Lumps, FeM 80%, +/-1 18,900 18,800 19,000 – 200 19,100 19,600
Ex-Hyderabad Lumps, FeM 80%, +/-1 19,700 19,600 19,800 – 100 20,300 20,600
INGOT Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 38,500 38,300 38,500 + 300 37,100 35,700
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 36,400 36,300 36,500 + 200 34,800 32,500
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 35,100 35,000 35,200 + 200 34,000 31,700
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 35,000 34,900 35,100   0 34,100 32,600
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 36,600 36,500 36,700 + 100 35,600 34,900
Ex-Chennai 3.5 x 4.5 Inch, IS 2830 36,500 36,400 36,600   0 36,500 35,700
Ex-Hyderabad 3.5 x 4.5 Inch, IS 2830 35,700 35,600 35,700 – 500 36,000 33,700
BILLET Ex-Mandi Gobindgarh 125×125 mm, IS 2831 39,200 39,100 39,300 + 300 37,500 36,300
Ex-Durgapur 125×125 mm, IS 2831 36,900 36,800 37,000 + 100 35,250 32,800
Ex-Rourkela 125×125 mm, IS 2831 35,600 35,500 35,700 + 200 34,400 32,400
Ex-Raipur 125×125 mm, IS 2831 36,000 35,900 36,100   0 34,900 33,200
Ex-Mumbai 125×125 mm, IS 2831 36,800 36,700 36,900 + 100 35,900 35,200
Ex-Chennai 125×125 mm, IS 2831 37,000 37,000 37,300   0 37,000 36,200
Ex-Hyderabad 125×125 mm, IS 2831 36,000 35,900 36,000 – 500 36,300 34,000
TMT Ex-Delhi/NCR 12MM 41,600 41,400 41,800   0 40,900 38,900
Ex-Durgapur 12MM 41,000 40,800 41,200   0 39,600 37,800
Ex-Raipur 12MM 39,700 39,500 39,900   0 38,900 37,000
Ex-Mumbai 12MM 40,600 40,200 40,700 + 200 39,500 38,800
Ex-Chennai 12MM 41,000 40,800 41,200   0 41,000 41,000
Ex-Hyderabad 12MM 40,500 40,300 40,700 – 500 41,000 39,500

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research


Indian Petcoke Market Calms on Uncertainty Ahead

The Petcoke market in India has loosen steam as all buyers halted their purchases and were waiting for the Government of India to declare its stand on Petcoke usage in India.

A speculation has been doing the rounds that the government court is considering banning usage of the refinery-derived fuel totally in all parts of the country. But, there has been no input on whether the main consuming sector—the cement industry—will be spared. The decision is expected to be announced on 9 May’18.

The refinery-derived fuel, considered superior to coal on account of the intrinsic calorific value being higher than that for coal, has been subjected to strong demand due to several user industries using it as the main fuel.

According to the latest data gathered by CoalMint Research, Petcoke production in Mar’18 was up by around 1.82% against the production in the preceding month. In the last month of the bygone fiscal, Petcoke production in the country was at around 1.12 MnT over the production of around 1.10 MnT in Feb’18.

Source: CoalMint Research

During FY18, demand for Petcoke in the country was at around 23.85 MnT; with the production at around 13.86 MnT and imports at around 9.99 MnT. The consumption during the fiscal was almost at the same volume as that in the previous fiscal. During FY17, around 23.78 MnT of Petcoke was consumed in India.

On the pricing front, there was neither any change in the international offers nor in the domestic prices in India. Buyers have now stopped booking imports in view of the uncertainty looming over the Petcoke usage in the future due to the possible all India Petcoke ban by the government.

The latest offers for Petcoke (6.5% Sulphur) from USA were assessed at around USD 113/MT CFR India; and the recent offers for Petcoke (9% Sulphur) from Saudi Arabia were assessed at around USD 110/MT CFR India. Both the offers remained un-deviated on week-on-week basis.

Source: CoalMint Research

Indian refineries are likely to lift their ex-works prices with the onset of May’18 as the international offers are high.

Source: CoalMint Research

The prevailing domestic Petcoke prices in India are: INR 8,950/MT(Reliance Industries Limited), INR 8,935/MT (Essar) and INR 7,860/MT (Mangalore Refinery and Petrochemicals Limited).

Imports of Petcoke in India has remained lackluster; and that was due to the supply tightness prevailed in the key international markets. According to the data compiled by CoalMint Research, only 488,350 MT of Petcoke was imported in India during the 1-28Apr’18 period.




Indian Billet Export Tender for Nepal receives Good Response

Rashtriya Ispat Nigam Limited (Vizag Steel) had floated tender for export of 22,016 MT bloom. The material offered comprised of 11,008 MT (four rakes) each of 150×150 mm and 200×200 mm bloom. The material has specifications IS 2830 C20MMn.

The bid due date for the tender was 20 Apr’18 and bid validity was till 27 Apr’18. The material delivery is scheduled in 15th May’18.

According to market sources report to SteelMint, the steel maker has finalised the tender for 150*150mm bloom, however 200*200mm bloom did not receive bids.

As per market participants report to SteelMint, the company has concluded the tender at around USD 510-515/MT, ex-mill and the material booked is about two rakes.

Trade participants mentioned that the response received to the tender is overwhelming as 150*150mm sized bloom is comparatively less popular among Nepal buyers and they generally prefer 90*90mm/100*100mm.

Also shortage of billets with Nepal based steel mills owing railway rake availability issues has resulted in active billet buying from India.

It is expected that the steel maker may float another tender for billet & wire rod export in a week’s time.

Presently, domestic price assessment for 125*125mm stands at INR 36,600-36,800/MT (ex-Durgapur, GST @ 18% extra).

Indian billet exports to Nepal climbed 74% in CY17

According to data maintained with SteelMint, India’s billet exports to Nepal increased 74% Y-o-Y from 0.61 MnT in CY16 to 1.06 MnT in CY17. Total billet exports from India summed up to 2.78 MnT with Nepal occupying the largest share of 38% followed by Indonesia and Sri Lanka at 15% and 10% respectively.


Pakistan Govt Ups Power Tariff for Steel, Finished Steel Prices may Rise by PKR 2000/MT

After weeks of deliberation, the Pakistan Government in its Annual Budget 2018, has finalized a steep rise in power tariff for the steel sector. The move is expected to bring about a considerable rise in steel prices in Pakistan. Similarly, the rate of Sales Tax for other allied steel industries including ship breaking and re-rolling has also been rationalized.

According to information, the Government in Pakistan has decided to remove the concession provided to steel sector in the form of sales tax rebate on power tariff. This will essentially increase the power tariff from PKR 10.5 levied presently to PKR 13, a direct increase of about 24%. An amendment to the Sales Tax Special Procedures Rules, 2007 has been made to bring about the change in tariff.

It may be noted here that around 800 units of power is required to produce 1 tonne of steel and a PKR 2.5/t increase in power cost can likely send steel prices up by around PKR 2,000/tonne.

On the other hand, the Country’s recent annual budget has reduced Customs Duty on import of coal from 5% to 3%. This reduction is likely to prove a major boon for the cement and power industry but the impact on steel prices would be nominal as Pakistan presently does not have any operational blast furnaces and produces most of its steel through EAF or IF route. Under these changes import of coal is also likely to go up to some extent.

Apart from this, an increase of additional customs duty from 1% to 2% on scrap has also noted under this Budget. There will be Customs Duty at 3%, Additional Customs Duty at 2% (which was 1% earlier) and Regulatory Duty at 5% charged extra on the import of scrap. According to participants, this will impact the import cost of ferrous scrap making it costlier.


India: Silico Manganese Offers Drift Downwards on Flat Demand

Indian Silico Manganese offers witness a fall as market lacks demand especially from overseas.

“Demand for Silico Manganese has not picked up, prompting producers to lower offers to garner greater buying interest,” said a producer source referring to the weak demand.

SteelMint learned that a weak export market has raised Silico Manganese producers’ dependency on the domestic market, thereby creating stiff competition among sellers.

In view of rising competition, another source mentioned that the domestic buyers are continuously trying to push Silico Manganese prices on the lower side.

SteelMint assessed Silico Manganese offers at INR 67,500/MT (Ex-Durgapur) and (Ex-Raipur).

Weak demand from the overseas market has created selling pressure on the producers. The European market has been disappointing for the sellers while the Middle-Eastern market has been supporting prices from drifting down further.

Export offers for the commodity have been assessed at USD 1,060/MT FOB India for 60-14 grade and USD 1,160/MT FOB India for 65-15 grade.

On the future outlook, market participants expect a further dent in prices as higher competition may compel sellers to lower their offers again in order to entice buyers.


World’s Top Iron Ore Miners Output : Q1 CY18 vs Q4 CY17

Vale reaffirms Iron ore & Pellet production guidance for FY’18

Vale iron ore and pellet production guidance for 2018 remains unchanged at around 390 MnT and 55 MnT respectively.

Vale, the world’s largest iron ore producer, observed 12% decline in quarterly production at 81.95 MnT in Q1 CY’18 as against Q4 CY’17 at 93.36 MnT. The decline in production is attributed to reduction in low grade ore production besides intense rainy season. On yearly basis, the production recorded marginal decline compared to 86.2 MnT in Q1 CY’17.

Vale’s pellet production witnessed at 12.78 MnT in Q1 CY’18, up against 12.42 MnT in Q1 CY17 mainly due to the restart of Tubarão II pellet plant.

The company is focusing towards high grade ore production, re-enforcing it as premium producer resulting in better margins over volume.

The company’s iron ore & pellet sales in first quarter CY’18 witnessed at 84.3 MnT, highest Q1 sales since inception, up 8% as against Q1 CY’17.

Rio Tinto: Pilbara Iron Ore Shipments Up 11% Q-o-Q in Q1 CY’18

World’s second largest iron ore miner- Rio Tinto recorded decline in Q1 CY’18 shipments. Rio Tinto’s Pilbara iron ore shipments witnessed at 80.3 MnT, down 11% on quarterly basis as against Q4 CY’17 at 90 MnT. It has witnessed a rise of 5% in shipments as against Q1 CY’17 at 76.7 MnT, owing to the implementation of productivity projects, fewer weather disruptions and ramp up of Silvergrass iron ore mine.

The company’s Pilbara iron ore production for the first quarter CY’18 marked slight decline on quarterly basis at 83.12 MnT, compared to Q4 CY’17, at 87.87 MnT. While, recorded an increase of 8% against first quarter CY’17 at 77.17 MnT.

Rio Tinto’s Pilbara shipments are expected to be between 330 to 340 MnT in 2018, in line with laid guidance. This is subject to market conditions and any weather constraints.

The share of iron pellets & concentrates production for CY’18 has been revised to 10.3 MnT to 11.3 MnT against the previously laid guidance of production between 11.5 MnT to 12.5 MnT.

BHP Billiton Slashes Iron Ore Production Guidance by 2%

BHP Billiton, the third largest iron ore producer: The total iron ore production on 100% basis from Pilbara, Australia for Q1 CY’18 witnessed at 67 MnT, down 6% as compared to 71.6 MnT in Q4 CY’17. This decline is attributed to cyclone in Jan’18 and unplanned car dumper maintenance.

The company’s total iron ore sales on 100% basis recorded at 67.8 MnT for Q1 CY’18, down 4% Q-o-Q as against 70.7 MnT in Q4 CY’17. The sales for Q1 CY’18 witnessed an increase of 8% on yearly basis.

BHP received approval for increase in Port Hedland capacity to 290 MnT iron ore p.a, which is expected to be achieved by end of FY’19.

It has reduced its production guidance to 272-274 MnT on a 100% basis against previous forecast of 275-280 MnT due to car dumper reliability issues.

FMG: Iron Ore Production guidance down 12% Q-o-Q

Fortescue Metals Group – world’s 4th largest iron ore producer, recorded 12% decline in iron ore production for the quarter ended Mar’18 at 41.6 MnT, as against 47.5 MnT in Q4 FY’17. The results stood down on quarterly basis owing to cyclone effecting port operations, maintenance, equipment downtime and wet weather at mines. Also, Chinese Steel demand remained subdued post New Year holidays, due to governmental regulations leading to decline in shipments for the quarter.

The miner shipment recorded at 38.7 MnT in Q1 CY’18, down 4% against 40.5 MnT in Q4 CY17. On Y-o-Y basis, shipments stood almost in line with shipments in Q1 CY’18 at 39.6 MnT.

The FY’18 shipment guidance witnessed in line with prior laid guidance of 170 MnT. However, the Q3 FY’18 results recorded lowest since June 2014, exhibiting decline in export targets.

The company has changed its iron ore price guidance to 65% of benchmark Platts 62 CFR index for the second half of FY’18. The FY’18 first half price realization stood at 68% of plats 62 CFR index.

Pakistan Coal Imports

Pakistan Government Reduces Tax on Imported Coal

In order to reduce the direct cost of manufacturing businesses utilising coal, the Pakistan Government has lowered the tax rates that were levied on imported coal.

Under the Budget presented for the FY 2018-19, the government has reduced the Custom Duty (CD) on imported coal from 5% to 3%.

Moreover, the government has also rationalized the tax collected from the commercial importers/large trading houses. Earlier, a tax of 5.5% from companies and 6% from persons other than companies were levied on coal imports comprised the final tax, which has now been reduced to 4% for filers and 6% for non-filers.

Pakistan’s Demand for imported coal has been boosted by the commissioning of the two new thermal power plants under the CPEC projects (China-Pakistan Economic Corridor). Besides, there has been steady requirement of coal from Pakistani cement firms as the country completes new infrastructure projects.

Under the planned budget, the federal government of Pakistan has unveiled a sum of Rs 1.03 Trillion towards Public Sector Development Programme (PSDP) for the next fiscal year, with 62% proposed to be spent on infrastructure including allocations for projects under the China-Pakistan Economic Corridor (CPEC).

The tax revision on coal imports would certainly help the power plants, thus making thermal power generation more viable. While for the cement sector, the lowered tax rates have been slightly off-set by the increase in Federal Excise Duty (FED) on cement from Rs. 1.25/kg to Rs. 1.50/kg.

As per the Vessel Line-up Data compiled by CoalMint research, Pakistan’s coal imports stood 3,263,084 MT during the first quarter of the CY18 (Jan’18-Mar’18). As a result of the enormous growth in coal imports, the country has attained nearly one-third of the total coal imported in CY17, during the first quarter itself.


Japan: Ferrous Scrap Exports Hit 17-Month Low in Mar’18

Japan – third largest exporter of ferrous scrap after EU-28 and US, has witnessed sharp decline in its scrap export volumes in March month. Ferrous scrap export volumes have hit seventeen months low in Mar’18. As per recent customs data, Japan exported 0.53 MnT ferrous scrap in Mar’18 which have dropped lowest since Oct’16 which was at 0.52 MnT then. Falling demand from major importers like South Korea and Vietnam, strong domestic demand along with sharply plunged scrap imports from China and Asian markets have resulted in lowering scrap exports from Japan.

Japan also witnessed decline in its ferrous scrap exports during Q1, 2018. Japan exported 1.76 MnT ferrous scrap during Q1’18 which have declined by 14% Y-o-Y as well as Q-o-Q as against 2.05 MnT ferrous scrap exports recorded in Q1 2017 and Q4 2017 respectively.

On monthly premises, ferrous scrap exports from Japan witnessed a fall of 20% M-o-M to 0.53 MnT in Mar’18 as against 0.66 MnT exports in Feb’18. In Mar’18 Japan’s ferrous scrap exports noted a plunge of 26% Y-o-Y as compared with 0.72 MnT exports in Mar’17.

Japan mainly exports special grade H2 scrap along with other preferred grades as SD, HS, Shindachi and H1. Major scrap export activities remain concentrated on ports like Tokyo, Osaka, Nagoya and Yokohama in Japan.

South Korea remained largest importer of Japanese ferrous scrap – 

During Q1 2018, Japan exported highest 1.07 MnT ferrous scrap to South Korea which is 61% of total exports. Although South Korean scrap imports have seen 8% Y-o-Y growth as against 0.99 MnT during Q 12017, its demand weakened sharply in Mar’18. Second largest buyer Vietnam imported 0.38 MnT occupying 22% share. Followed by other importers like China (0.23 MnT), Taiwan and Thailand.

In Mar’18, South Korean imports tumbled 23% M-o-M on weakened demand for rebar and high scrap inventories available with steelmakers. Vietnam and China imported 0.11 MnT and 0.07 MnT each witnessing M-o-M fall of 21% and 42% respectively as against corresponding imports in Feb’18.

Japanese scrap export prices rose sharply after mid Feb’18 – Amid increasing global scrap prices Japanese scrap prices turned upward after reaching short-term bottom in mid of Feb’18. Average H2 scrap export prices kept rising every next week from JPY 34,000/MT, FoB in mid of Feb’18 to JPY 37,000/MT which remained firm to higher side mostly for the month Mar’18. Following high scrap export offers, prices in Japan’s domestic market also increased sharply in Mar’18. High scrap prices also could have resulted in a sharp drop in exports from Japan in Mar’18.

During the first quarter of 2018, Japan’s crude steel production marginally improved as compared to crude steel production in Q1’17. As per statistics released by World Steel Association, Japan’s crude steel production recorded at 26.40 MnT during Q1’ 2018 as against 26.23 MnT during Jan-Mar’17.

Country-wise Japan ferrous scrap exports –

Country Q1-2018 Q1-2017 % Y-o-Y Change Q4-2017 % Q-o-Q Change Mar’18 Feb’18 % M-o-M Change
South Korea 1.07 0.99 8.08% 1.03 3.88% 0.3 0.39 -23.08%
Vietnam 0.38 0.36 5.56% 0.4 -5.00% 0.11 0.14 -21.43%
China 0.23 0.48 -52.08% 0.52 -55.77% 0.07 0.12 -41.67%
Taiwan 0.06 0.11 -45.45% 0.03 100.00% 0.03 0.01 200.00%
Thailand 0.02 0.02 0.00% 0.01 100.00% 0.02 0 _
Others 0 0.09 -100.00% 0.06 -100.00% 0 0 _
Total 1.76 2.05 -14.15% 2.05 -14.15% 0.53 0.66 -19.70%

Quantity in MnT,
Source: SteelMint Stats