South Korean Fe Scrap Import to Hit Record in 2010

South Korean ferrous scrap import was 3.802 million tonnes in January-May, which was 35.1% higher than the level in the same period of 2009. The annualized import is around 9.13 million tonnes and the import in 2010 would top the yearly record in 2009. The import was high at more than 700,000 tonnes for 4 straight months through May while the import in May decreased by 9.4% to 766,604 tonnes from a year earlier.

The scrap import increases in South Korea when South Korean steel makers started the operation of new electric arc furnace and blast furnace. The import rate from Japan and USA increased to around 80% of total volume in May while the supply from former main source of Russia remains low compared with the peak in 2004-2005.

The import increased by 11.2% to 1.803 million tonnes from Japan and by 63.7% to 1.398 million tonnes from USA in January-May from the same period of 2009. The import increased by 31.1% to 221,241 tonnes from Russia. However, the Russian scrap share was lower than share of Japan and USA. Russia is not the main source for steel makers in South Korea, according to a trade firm source.

The steel makers in South Korea increased the import from not only Japan, USA and Russia but also from Mexico, Australia and the Netherlands. On the other hand, the makers experience hard time to import from Japan and USA. The buyers are more cautious for the pricing than before when the buyers market shifts to balanced supply condition, according to the Japanese trade firm source.