Japan Ferrous Scrap Export to Drop for 2 Consecutive Years

Japanese ferrous scrap export is expected to decrease for 2 consecutive years. The export totaled around 5.05 million tonnes for January-November 2008. Through January-December, the export is estimated to be 5.5 million tonnes, to decrease by 1 million tonnes from 2007. The backgrounds are that domestic demand increased from early 2008 to summer and that South Korean import volume decreased after autumn.

Japanese ferrous scrap export to South Korea decreased to 2.337 million tonnes for January-November 2008 from 3.185 million tonnes of the same period of 2007, decreasing by 289,000 tonnes to 199,000 tonnes for Taiwan while increasing by 209,000 tonnes to 2.339 million tonnes for China. The export to South Korea would represent the first annual decrease in 5 years. Steel output in South Korea is decreasing after autumn due to world steel business downturn.

The export to China is expected to increase for the first time in 2 years, increasing from November when Japanese ferrous scrap price dropped rapidly after autumn. Taiwanese importers recently tend to select the purchase system by containers. The export to Taiwan is decreasing when Japanese exporters’ shipment is mainly by bulk carriers.

Japanese ferrous scrap export increased for 3 consecutive years from 2003, which hit the record high at 7.654 million tonnes in 2006. The export kept increasing to China for 2001-2005, and to South Korea for 2006-2007.

Global crude steel output may decline in 2009. However, Japanese large dealer source said the demand for Japanese ferrous scrap is expected to keep steady from East Asia when Asian steel makers need stable purchase of ferrous scrap.