Indonesia’s Fe scrap imports declined to 144,630mt in December, down by 28pc from a year ago but up by 14pc from the prior month. Change in import regulations hampered scrap trade in 2020 with imports decreasing to 1.42mn mt, down by 46pc from 2019, according to customs data.
In December, UK-based suppliers were the top exporters of ferrous scrap to Indonesia shipping 25,144mt, down by 40pc from a year ago, followed by Hong Kong with exports of 22,907mt, up 414pc.
Container shortage, vessel delays forced importers to buy scrap from short transit destination, which increased imports from Hong Kong, Australia, Japan, Singapore and Malaysia. In December, the steepest increase in import volume was from Malaysia with imports of 13,249mt, up from 661mt in December 2019.
Imports from the US fell to 7,831mt in December, down by 71pc from a year ago, while imports from Japan rose by 79pc to 17,870mt.
|Indonesia’s Fe scrap import in December|
|Country||Dec-20||Nov-20||Change MoM||Dec-19||Change YoY|
In 2020, Indonesia’s imports of ferrous scrap declined to 1.42mn mt, down by 46pc from 2.614mt in 2019 amid supply and demand disruptions caused by the COVID-19 pandemic, in addition to change in the country’s scrap import regulations.
In November 2019, Indonesia classified scrap metal as waste and asked importers to obtain licenses for scrap import while sellers are required to register with local embassy to ship scrap. The rule were eased in February until September end and then again extended until the end of the year to help domestic steelmakers import scrap. The uncertainty around the regulations reduced direct offers to the country through the year. Importers delayed license application and renewals while exporters were unable to register at the Indonesian embassy in their country amid COVID-19 restrictions which slowed work at government offices.
Steel demand was suppressed in May, June and July amid the slowdown induced by the lockdowns, thereafter recovering gradually in the second half of the year, supporting ferrous scrap imports.