Japan’s ferrous scrap exports up by 14pc in Mar

Japan’s ferrous scrap exports rose to 727,140mt in March, up by 14pc from February on rising steel demand in Asia. Higher exports to Bangladesh, China, Vietnam and Indonesia increased trade in March, according to Japanese customs data. 

Japanese scrap exports dropped by 16pc from the prior year on high offers amid tight supply and higher freight charges. Many mills, especially in South Korea, sought scrap from alternate destinations or relied on domestic supply to avoid high offers.

In March, Vietnam regained its spot as the top destination for Japanese ferrous scrap after losing it for a month in February with imports of 236,684mt, up by 8pc from February but down by 9pc from the prior year. Asian buyers preferred Japanese scrap as it was competitively priced against US supplies and available at shorter transit time. Exports to South Korea fell by 14pc from February to 217,210mt, while down by 24pc from a year ago. 

Japanese scrap exports to Bangladesh increased to 72,516mt, up by 96pc from February, while down by 27pc from a year ago. Export to Taiwan differed marginally from the prior month at 72,038mt, while fell by 36pc from a year ago. Imports from Indonesia nearly double to 30,308mt from 10,562mt in February.

After initial hiccups with exporting scrap to China, Japanese suppliers managed to ship significantly higher volumes of scrap in March. Exports to China rose to 60,220mt in March from 12,958mt in February. With the shakeup in China’s steel trade policy this week and the production curbs in place, the import of scrap into the country is expected to rise further.