Posted on 16 Sep 2021
In addition to paying close attention to any further changes in China’s import markets, Japanese steel scrap exporters are expected to increase shipments to more distant nations such as Turkey, Kallanish reports.
At the 13th China International Metal Recycling Conference in Tangshan on 15 September, Hiroyuki Ito, chairman of the Japan Iron & Steel Recycling Institute (JISRI), said Japan will have no other choice but to export scrap to nations outside of East Asia in future.
South Korea, currently the largest customer of Japan, is anticipated to become self-sufficient in steel scrap in the future and could even become a net exporter. In the medium term, India, Bangladesh and Pakistan will consume Japanese scrap export volumes freed up from South Korea.
In line with this trend, JISRI and the Japanese government are promoting new port infrastructure to berth larger vessels. Also, loading at multiple ports on to one large vessel is a possibility. This will help deal with the higher freight costs of longer-distance trade.
In terms of China’s demand for imports, Ito does not expect any increase unless obsolete scrap is accepted, including H2 grade and shredded scrap. The high-purity scrap required by China cannot currently be exported in large quantities due to low production and strong domestic demand.
In 2020, heavy melting scrap accounted for 54.9% of Japan’s total steel scrap exports, followed by bushelling and shredded steel scrap, JISRI adds.
Source:Kallanish
