Posted on 24 Aug 2021
Over January-July, China’s steel scrap imports totaled 420,513 tonnes, multi-time higher than the 13,142 tonnes a year ago, and July volume gained after one month of decline, up 14.8% to 93,215 tonnes, Mysteel Global calculated based on the data from the country’s General Administration of Customs (GACC), indicating that the Chinese steelmakers and traders had been importing steadily whenever it made business sense.
Last month, Japan remained China’s largest steel scrap supplier with 70,400 tonnes, or accounting for 75.6% of the total volume, and South Korea, the second largest supplier selling 14,800 tonnes of steel scrap to China, or accounting for 15.8% of the total, which was of little surprise due to their geographical proximity to China, Mysteel Global noted.
China’s steel scrap imports from new regions showed signs of increases too last month, and 690.9 tonnes of Britain-origin steel scrap, for example, were cleared at the Customs of Tianjin Port, North China.
In August, however, China’s steel scrap imports may decline, as the country’s demand has slowed down on power supply shortage in the southern region and Beijing’s determination to lower steel output on year for 2021 has dampened the domestic steel mills’ appetite for steel scrap consumption and stock-up.
“China’s domestic steel scrap prices have been trending down on mills’ less demand and market pessimism, and the price spread between domestic and overseas prices, thus, has been widening,” a Shanghai-based market watcher noted, and “in the first two weeks of August, I have not heard of any new bookings made by Chinese buyers,” she added.
As of August 20, China’s spot transaction price of the 6-8mm common-grade carbon steel scrap in Zhangjiagang, East China’s Jiangsu province, decreased by Yuan 120/tonne ($18.5/t) on month to Yuan 3,230/t excluding the 13% VAT, according to Mysteel’s assessment.
Japan’s steel scrap market did report quietness last week with the latest bid still as of August 5 at Yen 45,500/t FOB for H2 grade scrap by South Korea’s Hyundai Steel, or below the mainstream level, as reported.
Source:Mysteel Global
