Mining News Pro - Japan, world’s third largest ferrous scrap exporter after EU-28 and US, has witnessed a considerable fall in its scrap export volumes in H1 2018. As per recent customs data, Japan exported 3,678,527 MT ferrous scrap during first half of 2018, down 6% Y-o-Y as against 3,927,375 MT imports during the first half of last year. Falling demand from major importers like China, Taiwan and Asian markets, slowdown in purchases of low grade and H2 scrap from South Korea along with strong domestic demand on Olympics-2020 constructions have resulted in lowering scrap exports from Japan in H1 2018.
South Korea remained largest importer of Japanese scrap in H1’18 - Japan exported highest 2.11 MnT ferrous scrap to South Korea occupying 57% of total exports in H1 2018. Although South Korean scrap imports showed 8% Y-o-Y growth as against 1.96 MnT during same period CY17, its demand weakened sharply in second quarter on a sharp decline in rebar production. Second largest buyer Vietnam imported 0.72 MnT, up 13% Y-o-Y occupying 20% share. Followed by other importers like China (0.50 MnT, -44% Y-o-Y), Taiwan (0.23 MnT, -8% Y-o-Y), Indonesia and Bangladesh.
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.
Japan exported 1.92 MnT ferrous scrap in Q2-2018, up 9% Q-o-Q as against 1.76 MnT exports recorded in Q1-2018. On Y-o-Y basis, it observed marginal increase by 3% Y-o-Y in scrap exports as against 1.87 MnT ferrous scrap in Q2-2017.
Japanese scrap exports marginally up in Jun’18 - Japan exported 635,265 MT ferrous scrap in Jun’18 witnessing a marginal rise of 3% M-o-M as against 618,420 MT in its scrap exports in May’18.
On the other hand, Japan’s ferrous scrap exports noted a marginal plunge of 4% Y-o-Y as compared with 664,317 MT ferrous scrap exports recorded in Jun’17 last year.
Japanese scrap export prices moved down in Jun’18 - Japanese scrap prices turned downward in early Jun`18 after reaching the short-term top in May’18. Average H2 scrap export prices fell down in the first half of Jun’18 from JPY 34,000-35,000/MT, FoB to JPY 33,000-33,500/MT in mid-June which remained mostly firm to lower side for rest of the month. Low scrap exports prices compared to global levels could have resulted in a slight improvement in export activities from Japan in Jun’18.
South Korean imports increase 7% M-o-M over improved demand on less scrap inventories available with steelmakers in June. South Korea imported 307,915 MT ferrous scrap in Jun’18 as against 290,953 MT in May’18. Vietnam imported 153,767 MT (+7% M-o-M) and China imported 63,727 MT (-45% M-o-M) from Japan followed by other major importers like Taiwan (69,665 MT), Indonesia (28,661 MT) and Bangladesh (7,003 MT).
During the first half of 2018, Japan’s crude steel production edge up marginally to 52.98 MnT as compared to crude steel production which was recorded at 52.30 MnT in the same period last year. As per statistics released by World Steel Association, Japan crude steel production fell down by 4% to 8.76 MnT in Jun’18 as against 9.09 MnT in May’18.
Country-wise Japan ferrous scrap exports –
| Country | H1 2018 | H1 2017 | Y-o-Y % Change | Jun`18 | May`18 | M-o-M % Change | Jun`17 | Y-o-Y % Change |
| South Korea | 2.11 | 1.96 | 7.65% | 0.31 | 0.29 | 6.90% | 0.32 | -3.13% |
| Vietnam | 0.72 | 0.64 | 12.50% | 0.15 | 0.14 | 7.14% | 0.09 | 66.67% |
| China | 0.50 | 0.89 | -43.82% | 0.06 | 0.11 | -45.45% | 0.15 | -60.00% |
| Taiwan | 0.23 | 0.25 | -8.00% | 0.07 | 0.06 | 16.67% | 0.06 | 16.67% |
| Others | 0.12 | 0.18 | -33.33% | 0.05 | 0.02 | 150.00% | 0.04 | 25.00% |
| Total | 3.68 | 3.92 | -6.12% | 0.64 | 0.62 | 3.23% | 0.66 | -3.03% |