Posted on 03 Jan 2022
South Korea's ferrous scrap imports fell to a six-month low in November because of muted demand, while sustained price rises kept buyers quiet.
Imports fell by 6.1pc from the previous month to 385,000t, which was the lowest level since 378,000t in May. But November imports were 24.8pc higher from a year earlier, rebounding from a low base in 2020. January-November imports totalled 4.3mn t and were up by 8pc from the previous year.
Japan remained the top exporter of ferrous scrap to South Korea in November but imports fell by 5.2pc from the previous month. This was attributed to limited availability in the Japanese export market because of firm domestic demand. Exporters were unable to entice any buying interest from overseas buyers with the wide disparity between domestic and seaborne scrap prices.
International buyers also held back from the spot market, citing bearishness in finished steel product prices. South Korean steel mills kept domestic scrap prices flat in late November in a bid to build their inventories, market participants said.
Imports from Russia rose from a year earlier, as the costlier Japanese scrap prices left buyers little option but to seek alternative scrap suppliers. South Korea is likely to increase scrap imports in the future from other origins like Russia, market participants said, if domestic scrap demand and prices remain firm in Japan. But sluggish sales for finished steel products may keep the overall seaborne scrap complex under pressure.
Source:Argus
