Indonesia’s ferrous scrap imports from Singapore topped the chart in January with imports of 24,137mt, up 57pc from a year ago, and up by 67pc from December, according to customs data. In January, total Indonesian imports dropped by 24pc from December to 109,900mt, while up 12pc from a year ago. Expiry of the extended deadline for importer/exporter registration limited offers to the country.
Container shortage, vessel delays forced importers to buy scrap from short transit destination, which increased imports from Singapore, Hong Kong with Singapore replacing the UK has the top exporter of ferrous scrap to Indonesia. Exports from the UK and Australia were nearly half of that in December, although higher compared to a year ago.
The year-ago figures are a lower base due to the implementation of Indonesia’s new import policy in November 2019. To restrict imports of ferrous scrap and improve domestic consumption of ore and to avoid dumping of waste in the country, Indonesia classified scrap metal as waste and asked importers to obtain licenses for scrap imports, while sellers are required to register with the local embassy to ship scrap. Rules were eased in February 2020 until September end and then again extended until the end of the year to help domestic steelmakers import scrap. Supplier yards are still processing their registration at Indonesian embassies, said sources to Davis Index.
In January, imports from major supplier destinations decreased due to high offers. Imports from the UK declined to 13,082mt, down by 48pc from December, while imports from the US rose by 48pc to fell to 11,613mt compared to December. Suppliers from Japan fell out of favour with imports down by 61pc to 6,973mt.
|Indonesia’s ferrous scrap import in January (mt)|
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