Scant Supply Led to Boosted Scrap Imports by Steelmakers

SEATTLE (Scrap Monster): The scrap imports by domestic steelmakers in South Korea recorded modest jump during the initial eight-month period of 2020.

According to sources, the sharp reduction in scrap purchasing prices by domestic steel mills led to huge drop in domestic scrap sales. The suppliers were seen reluctant to sell scrap at low prices. Hence steel mills had no other option but to import scrap from foreign destinations. The trend is likely to continue for a couple of months. Meantime, the country’s scrap imports registered month-on-month decline by 8.5% in August to total 284,000 tons.

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The tight scrap supply from the U.S. and the sky-high prices of Japanese scrap led to increased imports of scrap by Taiwan from Australia. The imports from that country, which totalled 20,700 tons, have more than doubled during the month of August. The cumulative imports during Jan-Aug ’20 were up significantly by nearly 96%, amounting to roughly 123,000 tons.

The increased demand from local Vietnamese steel mills resulted in increased imports of scrap by the country in August. The data published by Customs authorities suggests that the country’s monthly imports surged higher by 31% month-on-month in August, whereas the year-to-date imports recorded marginal rise by 8.5% when compared with the corresponding period last year.